A comparative market analysis (CMA) is an evaluation compiled by a knowledgeable listing agent to determine the price range of a piece of real estate. It is different from an appraisal, which targets a exact market price at a point in time. It is crucial that sellers understand how a CMA is prepared. This blog covers the importance of a comparative market analysis for NH homes.
How a NH Comparative Market Analysis is Created
The current value of a dwelling is controlled by buyer demand. Since the market changes continuously, the traditional method to estimate market value is to review other homes that sold in recent months. Current listings are not good estimations since one can not determine what they will eventually sell for or if they will get sold all. When compiling a CMA, real estate brokers make an effort to find similar real estate and in nearby areas. Identical properties are rarely available, so changes are usually made to account for any differences. Upgrades, interior space, amenities, and other elements are taken into consideration. Not all home features lead to added value and the amount of adjustments do not often match the amount paid for them.
The Importance Of A Comparative Market Analysis For NH Homes
A CMA report usually provides a range for price rather than an exact figure. Where a piece of real estate should be priced within that range is based on the amount and desirability of competing homes for sale and your time frame. If you have a short window in which to close on your home, your selected price should be more aggressive (at either the bottom or even below the estimated range). This is especially true if there is an abundance of listings on the market. Basically, the higher you list a property, the more time it may take to sell. In markets where few listings are available and your home is highly desirable, you might have the advantage of pricing at the high end of the range. A competent agent can assist you with this decision and offer useful guidance. Wrongly pricing a property can result in loss of valuable time and money, so rely on the expertise 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 NH homes helpful. For other guidance on listing a property for sale, read the other articles on this website. To request a complimentary comparative market analysis, contact Customer Service at 800-639-4405 or info@accuratetitle.com.