What is a Comparative Market Analysis?

When it comes to selling your property, your asking price will most likely be the deciding factor for success. However, it can be a challenge to find that magic number that will have buyers scrambling to make an offer. Plus, it's hard to put a price tag on a property you feel nostalgic about. A Comparative Marketing Analysis (CMA) is your best option to price your property accurately. Here's our guide to this important report in the property sales process. 

What is a Comparative Market Analysis?

To pinpoint the value of your property, you can have a CMA done by a qualified property practitioner. This is a report that compares your home to properties with similar features in your area that have been recently sold. The CMA will also take into account local market conditions such as whether it is currently a buyer's or seller's market. The most reliable CMAs use the actual selling prices recorded in the Deeds Office when properties are transferred.

Benefits of a Comparative Market Analysis

A comprehensive and well-researched CMA has an important role in selling your home. Here are some important reasons to get a CMA done:

• It helps you price your property to achieve the maximum price and sell quickly.
• It can tell you how long your property will take to be sold.
• It can tell you whether you're selling at a favourable time depending on current market conditions.
• It can help you understand the appeal of your property for better marketing. By getting insight into property sales in your area, you can understand the popular features buyers are looking for in your area.

By getting a CMA done by a property professional, you can price your property with more confidence in your chances. A CMA provides you with cold, hard facts that are vital for success. 

Factors included in a Comparative Market Analysis

There isn't a standard template for a CMA and you may find real estate agencies apply different measures to compile it. However, here are five common factors taken into consideration in your report:

1. Recent property sales in your area: Your CMA will provide information on properties with similar features that were sold in the area. It can include the initial asking price, the actual selling prices, and the time the properties spent on the market. It will also highlight the average price per square metre in the area.

This will give you insight into how much buyers are actually paying in the area in comparison to properties currently on the market. Remember, just because a property is listed at a specific price doesn't mean it will be sold for that price. It will also give you an estimate of how long it will take to sell your property. 

2. Current prices of other properties on the market: This section of the CMA gives you details on recently listed properties in your area. Even though properties can sell for less, knowing the asking price of surrounding properties can ensure you price your home competitively for an effortless sale. 

3. Your property details: This is where clever upgrades or renovations to your home will pay off. The CMA will highlight your property's layout, condition, fixtures, security features, views, etc. to evaluate its attractiveness for a sale. 

4. The location of your property: Location is one of the most attractive factors when a buyer considers an area. The CMA will examine your area's appeal, your property's position in the neighbourhood, and proximity to amenities such as schools, shops, healthcare, and special attractions. 

5. The current property market: The state of the property market will also impact your asking price. In a buyer's market, for example, you'll find it tough to sell your property as there are more properties on the market and fewer buyers to absorb them. 

Partnering with a local area specialist with a good handle on the market will help you get an accurate CMA. With their help, you can set a realistic and appealing asking price. 

Get a free Comparative Market Analysis

With Kellaprince Properties, you can get a CMA done at no expense to you. Our property practitioners will do a walkthrough of your property and evaluate all the factors that will impact your property's sale. Contact our team for a free market assessment today.