A comparative market analysis (CMA) is a report prepared by a knowledgeable real estate agent to identify the potential price range of a property. It is not the same as an appraisal, which identifies the specific dollar amount at a point in time. It is crucial that property owners understand how a comparative market analysis is compiled. This article covers why you need a comparative market analysis for Burlington MA properties.
How a Burlington MA Comparative Market Analysis is Compiled
The current value of a dwelling is determined by buyers. Because the market fluctuates regularly, the best way to estimate current value is to look at recent sales. Active homes for sale are not good estimations since there is no way to determine what they will finally sell for or if they will get sold all. When compiling a CMA, listing brokers make an effort to use similar real estate and in nearby neighborhoods. Identical properties are rarely available, so adjustments are traditionally applied to account for differing features. Upgrades, interior space, features, and other factors are taken into account. Not all home amenities lead to added value and the amount of adjustments do not often equal the price paid for them.
Why You Need A Comparative Market Analysis For Burlington MA Properties
A comparative market analysis usually results in a price range instead of an exact figure. Where a piece of real estate should be priced within that range is based on the abundance and desirability of competing real estate on the market and your desired time frame. If you have a short window in which to close on your home, your target price must be more competitive (at either the low end or even below the price range). This is especially true if there is an abundance of real estate for sale. Basically, the higher you list a home, the longer it may take to find a buyer. In markets where competition is low and your home is clearly desirable, you may have the benefit of pricing at the upper end of the range. A experienced agent will assist you with this decision and offer critical advice. Incorrectly pricing a property can result in loss of valuable time and money, so rely on the experience of 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 Burlington MA properties useful. For more information on marketing real estate for sale, read the other articles on this site. To receive a complimentary comparative market analysis, contact Peter DaMore at 781-229-7900 or email@example.com.