What Does a Home Market Analysis Report Consist Of?
Selling your home may be a daunting experience, and you may not know where to start. You may be unclear how to price it to sell it quickly and receive the maximum amount. If you contact real estate agents, they will perform a comparative market analysis (CMA) on your property to help you determine how much the list price should be. A CMA should cost you nothing and is different than an official appraisal of your property. An appraisal must be purchased and is a researched and comprehensive report developed by trained appraisers. Your CMA should consist of the information you need to list your property and sell it.
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Comparable Sales
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Your comparative market analysis consists of a review and comparison of similar properties in the area that have sold recently. Most agents consider properties that have sold within the last three months or so. The homes should be similar in size, with the same number of bedrooms and bathrooms. The square footage of the lot and view should be taken into consideration. The date built is important because aging systems within the house can impact its value. If the home is in poor condition, buyers may have to spend money to repair it and want to pay less than if the upkeep is current.
Listings
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Buyers are not comparing your home only to those that sold recently. They also are looking at properties currently on the market. To be sure that yours is priced accurately, ask your real estate agent to take you to comparable listings in your area as part of the CMA. Look at upgrades and other features that make your house more or less valuable to buyers. Although all of the homes should be in close proximity to each other, location still is an important factor when pricing your home. Properties that are too close to busy streets or too far from schools should be priced accordingly.
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Other Factors
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Some properties have other features that need to be considered when performing a CMA. Look at the exterior of the house when driving by. The front door should be newer or freshly painted and the walk should not be obstructed. Small plants and shrubs add value to a home if landscaped or diminish it if not well kept. Some areas rely heavily on public transit, so, if your home is walking distance to a bus or subway station, it can be more valuable to buyers.
Price
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Once you establish a price after performing the research, calculate the price per square foot by dividing the square footage by the list price. Compare this figure to homes that have sold and those currently on the market. This will confirm that you are selling your house for a reasonable value. Price per square foot should take into consideration all permitted living space. The garage or any unpermitted space should not be included in the calculations. Once your house is listed, take into account the number of showings and offers in the first 30 days. If your house does not receive much activity, it may be time to reduce your price regardless of the outcome of your CMA.
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