The Importance Of A Comparative Market Analysis For Colorado Properties
A comparative market analysis (CMA) is a report prepared by a local real estate agent to estimate the possible price of a property. It is separate from an appraisal, which pinpoints the precise dollar amount at a point in time. It is important that property owners learn about how a comparative market analysis is compiled. This blog covers the importance of a comparative market analysis for Colorado properties.
How a Colorado Comparative Market Analysis is Prepared
The current value of a property is derived from buyers. Because the market fluctuates regularly, the traditional way to estimate market value is to review recent sales. Active homes on the market are not good reflections since we can not know what they will finally sell for or if they will get sold all. When preparing a comparative market analysis, real estate brokers make an effort to find similar property and in comparable neighborhoods. Identical properties are rarely available, so changes are usually applied to account for differences. Age, interior space, features, and other factors are noted. Not all home repairs result in added value and the dollar value of adjustments almost never equal the cost of upgrades.
The Importance Of A Comparative Market Analysis For Colorado Properties
A comparative market analysis generally results in a price range rather than a single amount. Where a listing falls within that range is based on the volume and desirability of competing homes on the market and your time line. If you have a little time in which to sell your home, your selected price should be more aggressive (at either the low end or even less than the estimated range). This is particularly true if there is an overstock of listings on the market. In general, the higher you list a property, the more time it can take to sell. In an economy where few listings are available and your property is extremely desirable, you might have the benefit of pricing at the high end of the range. A knowledgeable broker can assist you with this decision and offer valuable advice. Overpricing a home for sale can result in loss of critical time and money, so refer to the experience of agents and the factual information in the CMA.
I hope that you found this information on the importance of a comparative market analysis for Colorado properties helpful. For other guidance on marketing a property for sale, read the other blogs on this site. To request a complimentary comparative market analysis, contact John Cutshall at 303-747-6748 or john@fortuityrealty.com.