Competitive Market Analysis Determines House Values

When a Buyer wants to make an offer on a home, as a Single Agent we will assit in determining a market based value for the real estate. A Competitive or Comparable Market Analysis Report (CMA) will help to determine the house values.

Elements of a Competitive Market Analysis (CMA)

A CMA starts with a detailed analysis of the subject property. Information is obtained from a physical inspection of the property and public records. This is necessary so that the we can make appropriate adjustments to comparative house values.

Determing Comparative House Values Most importantly a CMA will contain a list of recently sold homes in the neighborhood that are similar in house and lot size, condition, age and construction. Ideally the comparable home will be less than a half mile away and sold within the last six months.

A full Comparative Market Analysis will also include active listings (houses currently on the market), pending sales (houses under contract but not closed) and expired, withdrawn or cancelled listings (houses that have not sold and removed from the market). Although this information can be useful in determining neighborhood market trends, it is not as important as the data obtained from properly adjusted actual home sales.

Opinion of Value

Determining Home Values in the Florida Keys We will review the CMA, factor in current real estate market trends and offer the Buyer an opinion of value. It is a Buyer that determines house values in today's market, however that is not to say that a Seller will accept any Buyer's offer.

With the CMA as a guide, the Buyers can then determine what the home is worth to them. There is nothing wrong with offering more than a market based value if that is what it will take to get that perfect piece of paradise. This is especially true if the Buyer intends to keep the property for a number of years, when more than likely real estate values will again appreciate. However, especially when dealing with distressed properties, it is possible Sellers will accept an offer below market price. As a Single Agent, we will give you the value of our knowledge and experience in Florida Keys real estate and offer you advise when making an initial offer as wel as during any subsequent negotiations.

Click on the attachment below for a sample of a full Competitive Market Analysis from Glenn Hoover Real Estate Services South Florida, LLC.