How Can I Create a Real Estate Market Analysis?

Do not pay more than a home is worth in the current real estate market. A true property market analysis–also referred to as a comparative market analysis, or CMA–could save you thousands in your next home purchase. It might also result in a substantial gain if you’re selling a home. Ascertain a home’s value by following general CMA guidelines to ensure you reap the best benefits from the sale or purchase of your next home.

Record the addresses of five houses sold and five houses for sale in the immediate area. Contain houses only in the same subdivision or within a half-mile radius. Note houses sold just within the past three months. List the houses sold on a separate sheet of paper in the houses currently on the market.

Insert separate column headings for the number of bedrooms, bathrooms, garage stalls, amenities, cellar type and some other additions. The details for the column fields will be inserted in the next step. Amenities may include a fireplace, granite countertops or tile like travertine. Additions may have a sun room, a swimming pool or a recreation room.

Call the local assessor’s office for advice about the houses. The evaluated value is frequently the sales cost of the home. Ask for details of every house and the evaluated value noted. If a house has a deck, then ask how big it is and note it. Write down the square footage and the number of bedrooms, baths and garage parking stalls, if the house has a basement or crawlspace, and if the home has any amenities or bonus areas. By way of instance, be familiar with granite countertops, a fireplace, a sun room, a recreation room, a swimming pool, a hot tub, a finished basement and other conveniences or developments. Also request the year the house was built and, if accessible, the years the roof, the fundamental air and the heating were replaced or installed.

List all comparable homes, including prices and details. For a more accurate CMA, use a minimum of three sold and three for-sale homes, and include equal amounts of both. Exotic houses include all houses with similar square footage, number of bedrooms and other details.

Add the prices of all comparable homes. Divide that number by the number of houses used in the calculation. This is the estimated market value of your home. Another more accurate approach to arrive at the market value would be to split each home’s cost by the square footage, which provides the price-per-square-foot for every. Add them all together and divide by the number of houses to acquire an average price-per-square-foot. Here is the ballpark cost of the home you are selling or buying.

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