What is a competitive market analysis?

When the seller wishes to sell a house or the buyer wishes to buy a house, both must know what the house stands on the current real estate market. For this reason, a competitive market analysis is often required, which is often referred to as market comparative analysis (CMA). Competitive market analysis is a report prepared by a real estate agency that provides an estimate of the current market value of the property. The properties that have recently been sold in this area or are currently listed are used as a comparison for the preparation of competitive market analysis. Properties that have been sold in the last three months are advantageous; However, the real estate agency will go to the annual if necessary. At least three properties should be used to perform a suitable analysis. Houses or properties that are currently on the market can also be used in analysis.

To perform a comparative market analysis, the real estate agency will look for houses in the same area as the property in question. Will also look for homes of similar size and withSimilar features. The real estate agency then compares the properties and adjusts the price up or down for differences in size or functions.

6 One tool used by real estate agencies to determine the appropriate list price is a competitive market analysis. Although the property does not have to be sold at the original price of the list, the seller wants to mention the property for a competitive price.

The buyer can also take advantage of the competitive market analysis in deciding how much the property offers. Buyers often offer an offer to buy at a lower price for ownership. In order to determine what the actual value of the property is, the buyer often relies on his real estate agency to provide the current market analysis before submitting an offer for purchase.

Competitive market analysis differs from evaluation in that the evaluation is ready for certified or licensed rating, while market analysis Je prepared by a real estate broker. Market analysis is usually prepared at no cost, while the appraiser charges the evaluation fee. In most cases, the bank will insist on the assessment of the property that determines the home, is at least as much as possible as the buyer offered to pay before approval of the loan for the purchase of real estate. In most cases, the bank will not accept market analysis instead of evaluation.