What is your property really worth? Your hairdresser might have an idea. Your mates at the club might have an opinion as well. But they can probably give you more valuable advice on your golf game or a new hairstyle. When it comes to real estate, it’s best to go to the experts for an estimate based on evidence and cold hard facts.
When working with sellers to determine a listing price or with buyers to check value before making an offer to purchase, a professional real estate agent should do what is known as a comparative market analysis, or CMA.
By going through comprehensive sold property records, the sales team at Fisk and Nagle First Choice in Bega selects recently sold properties that are similar to your property and in the same area. By comparing these properties, and adjusting for feature differences, an estimate of value can be made for your home or investment.
To find comparable properties and create your CMA the agent will look at;
- The square footage of indoor and outdoor living spaces. It’s no use comparing a house with a pool and BBQ area to one on the same street that doesn’t have either.
- The era the house was built in. A renovated federation house in good condition might be easier to sell and thus get a higher price than a “newer” brick and tile home.
The general state of the property and the level and condition of the fittings and inclusions. A luxury master bathroom or ensuite can alter a home’s price.
Location also plays a big part in comparing apples with apples. A 10 minute or 15 minute drive to town can have an impact on price. For some buyers a nearby school is essential and can push values up.
Off street parking, garages or sheds can also be a point of difference between properties.
A thorough CMA also includes comparisons to currently listed similar properties in the area. This allows for an assessment of the current competition and might lead to an increase or decrease in the estimate based on the sold properties data. It will also look at pending sales to get an indication of where the market is going.
When selling your car, an incorrect price might cost you a few hundred dollars.