The Prepared Seller - NC Comparative Market Analysis

A comparative market analysis (CMA) is a report prepared by an experienced listing broker to identify the potential price of a home. It is not the same as an appraisal, which is performed for a lender and pinpoints a specific dollar amount at a point in time. It is crucial that sellers understand how a comparative market analysis is compiled. This article covers the importance of a comparative market analysis for NC homes.

How a NC Comparative Market Analysis is Prepared

The market value of a property is derived from what a buyer is willing to purchase it for. Since the market changes frequently, the traditional method to identify current value is to review recent sales.

Active listings are not valid estimations since one can not determine what they will finally sell for or if they will sell at all. When developing a comparative market analysis, real estate agents make an effort to find similar-styled listings and in comparable neighborhoods. Exact matches are rarely available, so changes are usually applied to account for differences. Upgrades, living area, amenities, and other elements are taken into consideration. Not all property features result in added value and the dollar value of adjustments do not often equal the price paid for them.

The Importance Of A Comparative Market Analysis For NC Homes

A comparative market analysis usually includes a range for price instead of an exact price. Where a listing falls within that range depends on the abundance and quality of competing homes on the market and your time frame. If you have a little time in which to close on your home, your target price should be more competitive (at either the low end or even less than the estimated range). This is particularly true if there is a lot of inventory. Basically. the higher you list a home. the longer it can take to sell.

In an economy where competition is sparse and your property is clearly desirable, you might have the benefit of pricing at the high end of the range. A competent agent will assist you with this decision and provide critical guidance. Incorrectly pricing a listing can result in loss of valuable time and money, so rely on the experience of real estate agents and the undeniable information in the comparative market analysis.

I hope that you found this overview of the importance of a comparative market analysis for NC homes helpful. For more guidance on marketing a home for sale, review the other articles on this site.

To receive a free comparative market analysis, shoot me an email, text or give me a ring!

-Jake

704-412-7201

jake@allenwayrealestate.com