Why You Need a Comparative Market Analysis For Southern California Real Estate

Housing Market Analysis

A comparative market analysis (CMA) is an evaluation compiled by a knowledgeable listing broker to figure out the potential price of a piece of real estate. It is different from an appraisal, which identifies the specific price at a given time. It is important that home owners understand how a comparative market analysis is prepared. This article discusses why you need a comparative market analysis for Southern California real estate.

How a Southern California Comparative Market Analysis is Compiled

The market value of a dwelling is driven by buyer demand. Because the real estate market changes constantly, the best way to estimate current value is to look at recent sales. Active homes on the market are not accurate reflections since it can not be predicted what they will ultimately sell for or if they will get sold all. When preparing a comparative market analysis, listing brokers make an effort to locate similar-styled homes and in similar areas. It is not always possible to locate close matches, so changes are traditionally made to reflect differences. Age, living area, enhancements, and other factors are noted. Not all home repairs result in added value and the dollar value of adjustments do not often equal the amount paid for them.

Why You Need A Comparative Market Analysis For Southern California Real Estate

A CMA report normally provides a range for price rather than an exact price. Where a property falls within that range is based on the number and quality of competing real estate on the market and your time restrictions. If you have a little time in which to sell your home, your pricing must be more aggressive (at either the low end or even less than the estimated range). This is especially true if there is an abundance of real estate on the market. In general, the higher you list a home, the more time it may take to sell. In markets where competition is sparse and your property is extremely desirable, you might have the advantage of pricing at the high end of the range. A skilled agent can assist you with this decision and provide valuable advice. Incorrectly pricing a home can lead to loss of critical time and money, so refer to the knowledge of real estate agents and the undeniable information in the CMA report.

I hope that you found this overview of why you need a comparative market analysis for Southern California real estate useful. For additional information on listing real estate for sale, read the other blogs on this site. To receive a complimentary comparative market analysis, contact Matthew Rapoport at (213) 334-4141 or [email protected]