What is a Comparative Market Analysis & How to Determine the Value of a Property
Are you planning to buy or sell a property? If so, you need to have a good understanding of the current real estate market to make informed decisions. One of the ways to determine the most appropriate market value is through a Comparative Market Analysis (CMA).
A Comparative Market Analysis (CMA) is an educated estimation that helps determine the market value of a property. It is used to analyze comparable properties in a specific location and estimate their value. CMAs have become an essential tool for real estate professionals, property buyers and sellers, and homeowners looking to track their home’s value. Let’s take an in-depth look into why a CMA is essential, how it works, and the easiest way you can get your hands on one.
What is a Comparative Market Analysis?
A CMA is a report that helps estimate the value of properties based on the current real estate market. It provides a comparison of similar properties that have recently sold or are currently listed on the market. A comparative analysis report usually includes the number of bedrooms, the number of bathrooms, the square footage of each home, and its age. This data allows for a thorough examination of the market in a specific area.
How Do We Determine the Value of a Property?
The value of a property is determined by several factors, including location, age, property size, number of rooms, and condition. To get an accurate property value, we compare the house with similar homes in the area that have sold recently. This comparison helps establish the property’s market value based on the current market conditions.
How to Get a Comparative Market Analysis
SJA Real Estate Advisors can provide you with a comparative market analysis to help you learn the estimated value of any property. It could be your current property or a property you have your eye on. Our Advisors will compare similar properties in the same area that have recently sold. The report takes into account size, age, features of the property and local market conditions to help determine a properties current market value. This information helps our Advisors support our clients in making informed decisions about buying and selling properties.
How to Read a Comparative Market Analysis Report
Reading a CMA can be difficult, especially if you do not have a background in real estate. However, most reports follow a standard format that includes data on the subject property, comparable properties, and an analysis of that data. It will also include photos of the comparable properties, a list of upgrades that could impact the home’s value, and other factors that could influence the market. Your personal SJA Advisor can help you understand the report and interpret the data with you.
A Comparative Market Analysis is a valuable tool in determining a property’s value in the current real estate market. It is essential to have a thorough understanding of the market before buying or selling a property to make informed decisions. Contact your SJA Advisor to request a complimentary CMA report and evaluate the value of your property. With this knowledge, you can have an accurate idea of a property’s worth and make informed decisions.