When buying or selling a home, it’s important to make sure that you are getting a fair market price. Your realtor can help you to decide the going rate for your home by doing a comparative market analysis.
What is a Comparative Market Analysis?
A comparative market analysis is a report that can be prepared by a realtor for you. It compares homes similar to yours and the prices that they have recently sold for. This analysis helps you and your realtor to determine what the best rate is to list or buy a home.
While it sounds simple, this analysis can be quite complex. First a range of comparable properties needs to be determined. Then it has to take into account things like age of the home, location, and amenities, and adjust for comparable values between the differences in the properties. The comparative market analysis uses a wide range of data to make the calculations and provide an estimate of what the property is worth.
Why Get an Analysis?
If you are selling your home, the comparative market analysis provides you with detailed information about similar properties and what they have sold for. This allows you and your realtor to set a realistic selling price to help you to get the best price for your home. With the analysis, you will also be able to avoid selling your home for too little or overpricing the property entirely. When your home is priced within the right range, you can expect it to sell faster than if it is overpriced.
For home buyers, this type of market analysis allows you to see the prices that comparable homes have sold for in the area. It gives you realistic expectations of what the home is worth. Having an analysis helps you to make a reasonable offer on the home without overpaying.
For buyers and sellers, knowing the value of the home is key. Comparing similar homes in the area that have sold recently is one of the best ways to determine a fair and realistic selling price for the home. Your realtor will be happy to offer you a comparative market analysis of your home.
Your realtors at LUVA Real Estate will be happy to provide you with a comparative market analysis of your home.
