A comparative market analysis (CMA) is a report prepared by a local real estate agent to identify the possible price of a piece of real estate. It is different from an appraisal, which targets a precise market price at a given time. It is vital that sellers understand how a comparative market analysis is compiled. This blog covers why you need a comparative market analysis for Franklin TN properties.
How a Franklin TN Comparative Market Analysis is Compiled
The market value of a home is driven by buyers. Because the real estate market fluctuates frequently, the traditional method to identify market value is to look at recent sales. Current homes for sale are not valid reflections since it can not be known what they will eventually sell for or if they will sell at all. When preparing a CMA, real estate brokers try to find similar property and in nearby neighborhoods. It is not always feasible to use exact matches, so adjustments are normally applied to compensate for differences. Age, interior space, features, and other factors are noted. Not all property differences result in added value and the dollar value of adjustments almost never match the cost of upgrades.
Why You Need A Comparative Market Analysis For Franklin TN Properties
A CMA report traditionally provides a range for price instead of a single amount. Where a property falls within that range is based on the amount and quality of competing real estate listings and your desired time frame. If you have a short window in which to sell, your target price must be more aggressive (at either the low end or even less than the price range). This is especially true if there is high inventory. In general, the higher you list a property, the longer it can take to sell. In markets where competition is low and your property is extremely desirable, you might have the luxury of pricing at the high end of the range. A skilled broker could help you with this decision and offer useful advice. Incorrectly pricing a home for sale can result in loss of critical time and money, so rely on the knowledge of agents and the undeniable information in the CMA.
I hope that you found this information on why you need a comparative market analysis for Franklin TN properties useful. For additional advice on listing real estate for sale or to request a free comparative market analysis, contact me today.
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