A property appraisal, while important, is only one factor that affects a home’s list price. Unfortunately, inexperienced real estate agents and sellers working alone might stop here. To arrive at a fair price, sellers and their agents must factor the results of a market analysis into the home’s list price.
What Is a Market Analysis?
A comparative market analysis, commonly called a CMA, helps real estate agents determine the market value of a home. It uses data from similar homes recently sold in the area to arrive at a fair price.
At Ft. Lauderdale Realty, we believe that a CMA is an essential part of the pricing process. That’s why we offer this service free for our valued clients.
How Does a CMA Work?
To properly perform a CMA, real estate professionals begin with information from at least three similar homes sold in the area within the past six months. Homes should be comparable in the following characteristics:
- Location: Homes considered in the CMA should be in the same neighborhood as the home you’re pricing to sell.
- Lot size: Even small differences in lot size can make big differences in price, so all homes considered in the CMA should be very similar in size to the property in question.
- Interior size: Similar to lot size, the more interior square footage a home has, the more valuable it tends to be. All homes considered in the CMA should be relatively equal in size.
- The number of bedrooms and bathrooms: The more bedrooms and bathrooms a home has, the more valuable it is. If the home you’re pricing to sell has three bedrooms and two bathrooms, all homes in the CMA should have the same to keep things equal.
When conducting a CMA, real estate professionals also consider special features, the sale dates of the homes and other factors, depending on the market.
Contact Us Today!
Get your pricing right the first time! Contact Ft. Lauderdale Realty today to learn more about your free market analysis.
Contact us today at 800 661 2388 or email us at info@FtLauderdaleRealty.com.
