Revealed Comparative Market Analysis Property Secrets For Success
To perform a CMA, follow these steps:
- Identify Comparable Properties: Look for properties similar in size, location, and features. These are often referred to as "comps." Ideally, these properties should have sold within the last three to six months to ensure relevance.
- Analyze Market Conditions: Consider the current supply and demand dynamics in the area. Are properties selling quickly, or is the market saturated? This information will help you gauge the property's competitiveness.
- Adjust for Differences: Account for any differences between the subject property and the comps. This includes variations in square footage, amenities, and condition. Adjusting for these factors ensures an accurate valuation.
- Calculate the Price Per Square Foot: Divide the sale price of each comp by its square footage to get the price per square foot. Use this figure to estimate the value of the subject property.
- Review Historical Data: Examine past sales data to identify patterns that might affect future pricing.