A comparative market analysis (CMA) is a calculation put together by a local real estate agent to identify the price range of a home. It is different from an appraisal, which targets a exact value at a point in time. It is important that home owners understand how a comparative market analysis is compiled. This article covers the importance of a comparative market analysis for Grand Rapids Michigan homes.
How a Grand Rapids Michigan Comparative Market Analysis is Calculated
The current value of a dwelling is determined by buyers. Because the real estate economy fluctuates regularly, the best method to identify current value is to consider other homes that sold in recent months. Active listings are not good estimations since we can not determine what they will eventually sell for or if they will get sold all. When compiling a CMA, listing brokers make an effort to find similar listings and in nearby neighborhoods. It is not always possible to select close matches, so changes are often made to compensate for differing amenities. Upgrades, square footage, features, and other factors are taken into consideration. Not all home repairs result in added value and the dollar value of adjustments rarely match the expense paid for them.
The Importance Of A Comparative Market Analysis For Grand Rapids Michigan Homes
A comparative market analysis generally results in a range for price rather than a single amount. Where a home should be priced within that range is based on the amount and quality of competing listings and your desired time frame. If you have a short window in which to sell, your pricing must be more aggressive (at either the low end or even below the price range). This is particularly true if there is a lot of inventory. In general, the higher you list a property, the more time it may take to find a buyer. In an economy where few listings are available and your home is clearly desirable, you might have the benefit of pricing at the upper end of the range. A knowledgeable broker will assist you with this decision and offer valuable guidance. Wrongly pricing a property can result in loss of critical time and money, so rely on the expertise of agents and the factual figures in the CMA report.
I hope that you found this information on the importance of a comparative market analysis for Grand Rapids Michigan homes helpful. For other guidance on listing real estate for sale, review the other articles on this site. To receive a complimentary comparative market analysis, contact John Doorn at 616-292-7951 or firstname.lastname@example.org.