Market Analysis 101: Getting it Right

  • Market Analysis 101: Getting it Right
  • Setting the right listing price and submitting a strong first offer are crucial steps to ensuring a smooth transaction. If a price is reduced multiple times, the house will sit on the market longer and sell for less than it should. Low offers could offend sellers or mean defeat in a bidding war.

    The comparative market analysis (CMA) is the main tool agents use to recommend a good listing price or offer. The CMA is based on the sales prices of similar houses in the area and helps determine the market value of a property.

    Take a look at some market analysis dos and don’ts.

  • Market Analysis Don’t

    Don’t call it an appraisal. A CMA is not an appraisal. An appraisal report is a comprehensive opinion of value conducted by a licensed appraiser. A CMA is no substitute for an appraisal.

    Market Analysis Do

    Do base your analysis on:

    Price of similar houses currently on the market
    Recent sale prices of similar comparable houses
    Number of days similar houses sat on the market at certain prices
    Difference between list and sales prices of recently sold houses
    © 2018 360training.com | 888-360-8764 | https://www.360training.com

  • Market Analysis Don’t

    Don’t base your analysis on:

    What the seller paid
    Price the seller wants
    Seller’s mortgage
    Tax value

    Market Analysis Do

    Do select the right comparables. Search a database of local properties for sale. Select houses that are as similar as possible to the subject property within a few hundred square feet and constructed within ten years of the subject property.

    © 2018 360training.com | 888-360-8764 | https://www.360training.com

  • Market Analysis Don’t

    Don’t make adjustments to the subject property. Remember: All adjustments are made to the comparable price, not the subject property.

    Market Analysis Do

    Do compare the features of the comparables with the house’s features. If the other house has a feature that the subject property doesn’t, subtract the value of that feature from the comparable’s sale price. If your house has a feature that the comparable property doesn’t, add the value to the comparable.

    © 2018 360training.com | 888-360-8764 | https://www.360training.com

  • Market Analysis Don’t

    Don’t overlook market trends. Home buying and selling don’t happen in a vacuum. Lots of factors affect where prices are heading, inventory, and days on the market. The current condition and forecasted trends of the local market will point you in the right direction.

    Market Analysis Do

    Do consider the seller’s priorities. The market analysis will give you a range of possible prices. Whether you choose a price at the low end or the high end will depend on the current local market and the seller’s objective. If the seller needs to sell quickly, going with the low end may be better because it will generate more interested buyers.

    Market Analysis Don’t

    Don’t go high just because it’s a hot market. Buyers may not even look at an overpriced house. Base the price on what other similar properties have recently sold for and the features of the house you’re listing. Pricing it right from the beginning will make it more likely to sell quickly for the best price.

    © 2018 360training.com | 888-360-8764 | https://www.360training.com

  • http://www.realtor.com/advice/sell/homes-first-price-best-price/
    https://www.trulia.com/guide/home_selling/home_selling_strategies/how_to_price_your_home_right/
    http://www.rd.com/home/improvement/5-strategies-for-pricing-a-home-to-sell/

    © 2018 360training.com | 888-360-8764 | https://www.360training.com

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