How Much Is My Home Worth?
Call Dave Lapierre 530-515-9495 for a fair market value of your home.
When working with sellers to determine a listing price or with buyers to check the value before offers to purchase, real estate agents do what is known as a comparative market analysis, or a CMA.
By going to sold property records, the Realtor, selects recently sold properties that are similar to the subject property in the same geographical area. By comparing these properties, and adjusting for feature differences, an estimate of fair market value is made for the subject property.
A thorough CMA includes comparisons to currently listed similar properties in the area. This would allow an assessment of the current competition and might lead to an increase or decrease in the estimate based on the sold properties.
Crucial to a CMA’s accuracy in determining market value is the selection of the best comparable properties. Several things a Realtor considers when choosing comps are:
- When the property was sold: The more recent the sales makes the sold prices more relevant at the time of the CMA.
- Where the property is located: The next consideration is locating comps in the same local or general area.
- Characteristics of the home: As to features of the home, comparable homes should be as similar as possible, i.e. number of beds and baths, square footage, lot size etc.
Adjustments at times have to be made to compensate our calculation for differences in the homes to adjust the sold prices of the comparable homes to better match the subject property. We then arrive at our estimated current market value.
A CMA isn’t just comparative math. “Real estate is local” is a well known quote because it’s true. A Realtor needs to know why homes in one area sell differently for higher or lower prices than comparable homes in another area. Just comparing numbers without knowing the area and properties can be a disaster.
CALL DAVE LAPIERRE AT COLDWELL BANKER 520-515-9495 FOR A FAIR MARKET VALUE OR YOUR HOME.