A comparative market analysis (CMA) is a calculation put together by a local real estate broker to estimate the potential price range of a home. It is not the same as an appraisal, which determines the exact value at a given time. It is important that sellers understand how a comparative market analysis is prepared. This article covers understanding a comparative market analysis for Newbury MA properties.
How a Newbury MA Comparative Market Analysis is Prepared
The market value of a home is controlled by what a buyer is willing to pay. Since the real estate economy changes regularly, a common way to estimate current value is to compare it to other properties that recently sold. Current homes for sale are not accurate estimations of since there is no way to tell what they will eventually sell for or if they will sell at all. When developing a comparative market analysis, real estate agents try to locate comparable property and in comparable neighborhoods. It is not always feasible to find exact matches, so adjustments are often made to compensate for differences. Condition, square footage, enhancements, and other elements are taken into account. Not all home differences result in added value and the amount of adjustments typically do not equal the price paid for them.
Understanding A Comparative Market Analysis For Newbury MA Properties
A CMA report usually results in a price range. Where a property should be priced within that range depends on the volume and quality of competing homes for sale and your time restrictions. If you have a short time frame in which to close on your home, your target price should be more aggressive (at either the bottom or even below the estimated range). This is especially true if there is an overstock of homes for sale. In general, the higher you price a home, the longer it may take to sell. In markets where competition is low and your home is highly desirable, you may have the luxury of pricing at the upper end of the range. A skilled real estate agent can assist you with this decision and offer critical guidance. Wrongly pricing a home for sale can lead to loss of valuable time and money, so refer to the experience of an experienced listing agent and the factual figures in the CMA report.
I hope that you found this information on understanding a comparative market analysis for Newbury MA properties helpful. For other guidance on listing a property for sale, read the other articles on this site. To request a free comparative market analysis, contact John Wells at 978-518-1481 or firstname.lastname@example.org.