A comparative market analysis (CMA) is a calculation put together by a local real estate broker to identify the possible price range of a property. It is not the same as an appraisal, which determines the exact price at a given time. It is crucial that property owners understand how a comparative market analysis is compiled. This article covers understanding a comparative market analysis for Boca Raton FL real estate.
How a Boca Raton FL Comparative Market Analysis is Calculated
The current value of a property is controlled by what a buyer is willing to purchase it for. Since the real estate market changes frequently, the traditional method to estimate current value is to view other listings that sold in recent months. Current listings are not good reflections of since there is no way to foresee what they will eventually sell for or if they will sell at all. When developing a comparative market analysis, real estate brokers attempt to locate comparable listings and in comparable neighborhoods. It is not always possible to find close matches, so adjustments are often made to account for differences. Upgrades, square footage, amenities, and other factors are taken into consideration. Not all home features add value and the amount of adjustments almost never match the price paid for them.
Understanding A Comparative Market Analysis For Boca Raton FL Real Estate
A CMA report generally includes a price range. Where a listing should be priced within that range depends on the volume and desirability of competing real estate on the market and your time frame. If you have a little time frame in which to close on your home, your target price should be more aggressive (at either the bottom or even less than the price range). This is especially true if there is an overstock of listings. In general, the higher you price a home, the more time it may take to find a buyer. In an economy where few listings are available and your property is clearly desirable, you may have the advantage of pricing at the high end of the range. A competent real estate agent can assist you with this decision and offer critical advice. Wrongly pricing a home can result in loss of valuable time and money, so rely on the knowledge of a qualified real estate agent and the factual figures in the CMA report.
I hope that you found this information on understanding a comparative market analysis for Boca Raton FL real estate helpful. For other information on listing a property for sale, review the other blogs on this website. To request a free comparative market analysis, contact Sonny Solomon at 561-247-1047 or sonny@sonnysolomon.com.
