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Comparative Market Analysis in Real Estate
“A comparative market analysis (CMA) is an examination of the prices at which similar properties in the same area recently sold. Real estate agents perform a comparative market analysis for their clients to help them determine a price to list when selling a home or a price to offer when buying a home.”
Since no two properties are identical, agents make adjustments for the differences between the sold properties and the one that is about to be purchased or listed to determine a fair offer or sale price. Essentially, a comparative market analysis is a less-sophisticated version of a formal, professional appraisal.
Importance Of Comparative Market Analysis in Real Estate
Comparative market analysis has critical value in the real estate industry. It is considered a best tool to derive the price range that is used as a guide to decide the listing or an offer price. CMA is not just about comparing numbers, one should have the complete knowledge on the dynamics of selling properties in the real estate industry and should have capability to make decisions based on the given data. If the wrong price is derived and decision is taken based on this price, a home seller may have a huge loss. It will not only incur a loss to seller, but also may have a negative impact on the trend of prices in the real estate industry in the related area.
Process of Comparative Market Analysis.
The process of Comparative Market Analysis involves the price comparison of similar home including the size, location, age and condition of the home. The price is derived by comparing the features of home to be sold or purchased with the homes that have the similar features. It is not an easy process to get the correct price. It is very technical and requires the sound understanding of all factors involved in the process.
Comparative Market Analysis is not a cup of tea for everyone. Comparative Market Analysis should be done with a great care by an experienced real estate agent. While doing a Comparative Market Analysis a number of elements should be taken into consideration. If a real estate agent just walk through the property for ten minutes and give the price, you need to think about the price. A professional Real estate agent will take every important thing into consideration and then will give a price with confidence.
Here are the most important elements that should be considered while doing a Comparative Market Analysis:
Why Hire Absolute Consultant Group?
Absolute Consultant Group (ACG) has a great team of real estate professionals. We are fully equipped with the required knowledge and experience that is required for a Comparative Market Analysis. ACG has done a huge number of CMA and has learned each and every important element of this process. We can help getting the best market price for your home.