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Bernadette, Both Buyer and Seller in Maryland

Comparative Market Analysis

Asked by Bernadette, Maryland Wed Sep 12, 2012

what are the methods (elements used for comparisons) that agents use to do a Comparative market Analysis to determine the "Right Price".

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13
Hi Bernadette,

I have found this link for better understanding of a Comparative Market Analysis on Real Estate :

http://www.realtor.com/advice/understanding-the-comparative-…
0 votes Thank Flag Link Tue Jun 21, 2016
Last sold properties and what currently on the sell need to be considered.
Ideally compare in same area but it is depend if you can find similar comparables.
With respect
0 votes Thank Flag Link Wed Jun 26, 2013
Hi Bernadette,

The ideal CMA would be three of the same houses with all the same attributes in the same area. However, we do not live in an ideal world. When I complete a CMA for a client, I include active listings, pending sales, and sold properties in the last three to six months. The actives are your competition and should be considered in pricing.
0 votes Thank Flag Link Fri Jun 21, 2013
Bernadette,
The best element to use when completing an analysis is what most recent similar homes have sold for. Not home pricing of active listings. This will tell you what buyers are willing to pay.
0 votes Thank Flag Link Fri Jun 21, 2013
In addition to those physical elements mentioned in previous answers, I persoanlly believe the home owners have fairly good idea where the price should be, at least know what is the comfortable price range. However, the right price is very crucial to get the house sold. It is not how much the owners want to NET, not how much return the owners want to get after certian renovation work. More than often some unrealistic expectation or speculation gets into the way of listening what the similar house sold for in recent transactions. Pricing a house is so as simple as it sounds. Contact Bill Dong 301-801-0856.
0 votes Thank Flag Link Fri Jun 21, 2013
Hi Bernadette,

A CMA actually helps you choose the right price range. To do that you have to look at:

Similarly styled homes
Similarly sized homes
Homes within a 1 - 3 mile radius (the closer the better)
Homes sold within 3 - 6 months (with the newer sales holding the most weight)

A CMA should also include basic adjustments for things like s.f., interior upgrades, exterior uprades, etc. to do an apples to apples comparison.
0 votes Thank Flag Link Thu Sep 13, 2012
It is usually homes that are within 300 + or - square feet withing .25 mile raduis and within 20 years of construction. However, it really depends on how niche your neighborhood is, and should factor in all sorts of elements, such as green home features, historic homes, style, and more.
0 votes Thank Flag Link Wed Sep 12, 2012
Typically when doing a CMA we try to use like homes as yours within your community that have sold in the last 6 months Sometimes we may need to go up to a year. If there are no homes in your community comparable then we would go outside within a 1 to 2 mile radius. You cannot compare a split foyer to a colonial for example. Adjustments are then made for improvements and upgrdaes or lack there of to set a competitive sales/market price. I try not to use foreclosures in my market value reports if at all possible and if I have to I adjust your value for the difference of a distressed bank owned property.
0 votes Thank Flag Link Wed Sep 12, 2012
An excellent question Burnadette. A Comparative Market Analysis (CMA) is essentially a comparison of properties in your area, which have sold, failed to sell or are under contract. These properties are compared to the subject property with adjustments for many different variables including, but not limited to: size, amenities, condition, age, lot size etc.
Feel free to contact me directly, if you'd like me to give you a detailed breakdown or to do a CMA for a specific property.
Best regards,
Erich Cabe
202-320-6469
0 votes Thank Flag Link Wed Sep 12, 2012
If you would like to have a detailed conversation about building a cma or if you would like one, please call The Noble Group of Execuhome Realty at 888-205-7773 ext. 6 for Jimmy (owner/team leader)
0 votes Thank Flag Link Wed Sep 12, 2012
Hi Bernadette,

There's a few factors. Ideally, you'll be able to find recent sales with homes: in the same area (in the same neighborhood is best), similar style, built about the same time, and size of floorplan. Once you have similar homes with this criteria, you can then adjust a subject's property up or down depending on the home's condition, features and lot location.

Hope that helps. Knowing the neighborhood can really help come up with a better CMA.

Good luck.
0 votes Thank Flag Link Wed Sep 12, 2012
Agents typically use the mls to search for recent sales in your neighborhood no more than six months old. They determine the value of your home based mostly upon square footage and recent updates to the home. The showability of the home is also a key factor. Homes that are staged to sell typically sell much quicker. Lot size is also an important element for comparison.
0 votes Thank Flag Link Wed Sep 12, 2012
In short, Recently sold properties in a close proximity to the subject property , similar in style, sq ft, condition, lot size, and the homes amenities.
0 votes Thank Flag Link Wed Sep 12, 2012
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