Comparative Market Analysis: What Is It and Why Is It Important?

Selling a house in Jacksonville, Florida is one of the biggest challenges you can undergo. As it’s a sizable amount of money to handle, it’s quite difficult to find a buyer, especially if you’re in need of some instant cash. Despite this, it’s crucial to start the sales process correctly in order to avoid getting cheated out of your property.

One of the most crucial components of property selling is the first step: finding a fair price for the lot you’re selling. While there are various methods in which you can ascertain the value of your home, the best approach towards this is to have a Comparative Market Analysis (CMA) done for your house and lot.

Comparative Market Analysis (CMA)

As the name implies, a CMA will have an expert assess the value of your house and lot through the use of comparative analysis. This involves utilizing the information of nearby properties that have been sold in the past six to twelve months to ascertain the area’s average property value. 

Aside from this, it will also factor in numerous aspects such as lot area, house size, and overall condition and compare them to similar houses that have been sold recently. This allows you to have a good basic figure to start your negotiations with—ensuring that the price you offer is more or less a “fair” figure.

Why Use CMA?

Property values rise and fall according to recent global events and local trends, which can cause house prices to shoot up and crash at certain points. The value of your property will definitely not be the same as it was when you first bought it, which is why it wouldn’t be fair to you or the buyer to base it on that. 

One must factor in depreciation, house additions, renovations, maintenance, and the overall market value of your local area. At the end of the day, it makes for a really messy pricing scheme if you’re selling without the appropriate information.

By utilizing CMA, you take the guesswork out of pricing, allowing you to ease the troublesome risk of bank appraisal problems when you’re already making a sale. While this method won’t give a 100% guarantee of to the cent accurate pricing, a professional’s assessment will shoot pretty close to the goal.

What Factors are Checked In a CMA?

There are three major umbrella factors that a professional property assessor will look into. This will include inspection of the lot, the exterior, and the interior. 

Lot features will include the acreage and the local area your property is standing on. The exterior, on the other hand, will be focused on the aesthetic appeal of your property, as well as the integrity of the overall structure. Meanwhile, the interior will focus on the inner workings of functionality—such as the number of usable bedrooms and bathrooms, the conditions of your HVAC system, and the workings and maintenance of your plumbing system.

The Bottom Line

Ultimately a CMA will allow you to have a professional’s assessment of your property, thus giving you a good price to base your marketing on. This way, you get to offer a fair price that will make your buyer happy and make you satisfied with the amount you receive.

Are you looking for a real estate management company in Jacksonville, FL to help you handle the sale of your home? Get in touch with us and have a professional handle the sale of your home!