A comparative market analysis (CMA) is a report compiled by an experienced listing agent to determine the price range of a property. It is separate from an appraisal, which pinpoints a exact price at a given time. It is crucial that sellers understand how a CMA is compiled. This blog discusses why you need a comparative market analysis for Reading Massachusetts real estate.
How a Reading MA Comparative Market Analysis is Compiled (Reading MA CMA)
The current value of a property is derived from buyer demand. Because the real estate market changes continuously, the traditional method to determine current value is to compare it to other properties that recently sold. Active listings are not good estimations since it can not be predicted what they will ultimately sell for or if they will get sold all. When compiling a comparative market analysis, listing agents make an effort to find similar property and in similar areas. Exact matches are not often available, so adjustments are traditionally applied to reflect any differences. Condition, square footage, features, and other factors are noted. Not all property repairs result in added value and the dollar value of adjustments almost never equal the cost of upgrades.
Why You Need A Comparative Market Analysis For Reading MA Real Estate
A comparative market analysis usually includes a range for price instead of a single amount. Where a property falls within that range depends on the number and desirability of competing real estate listings and your desired time frame. If you have a short window in which to sell your home, your target price should be more aggressive (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 price a property, the longer it can take to sell. In markets where competition is sparse and your home is clearly desirable, you may have the luxury of pricing at the upper end of the range. A competent agent can assist you with this decision and offer valuable guidance. Overpricing a home can result in loss of critical time and money, so refer to the knowledge of agents and the undeniable information in the comparative market analysis.
I hope that you found this overview of why you need a comparative market analysis for Reading MA real estate helpful. For additional information on marketing real estate for sale, review the other blogs on this site. To receive a complimentary comparative market analysis, contact Scott Strang at 978-664-2828 or scott@scottgregorygroup.com.
