What is a Competitive Market Analysis and Why are They Important?

When it comes time to sell your home at the Lake of the Ozarks, knowing the market value of your home is important. Deciding on a fair market price can be complicated if you aren’t familiar with the real estate market. That’s why obtaining a Competitive Market Analysis for your home could be very beneficial when you list your home for sale. Read on to learn more about what a Competitive Market Analysis is and why it could benefit both the buyer and the seller.

What is a CMA?
A comparative market analysis is an examination of the prices at which similar properties in the same area recently sold. Real estate agents perform a comparative market analysis for their clients to help them determine a price to list when selling a home or a price to offer when buying a home. Since no two properties are identical, agents make adjustments for the differences between the sold properties and the one that is about to be purchased or listed to determine a fair offer or sale price. Essentially, a comparative market analysis is a less-sophisticated version of a formal, professional appraisal.

While the comparative market analysis is not an official appraisal, the real estate agent uses a great deal of similar practices and methods that an appraiser would use to arrive at a reasonable value for the property. If the home or property is so distinctive or unique that there are no comparable properties found, it may be in the best interest of the owner to hire a formal appraiser to value the property. That being said, let's take a look at some of the benefits of a CMA.

Highlights Any Room for Improvement
Studies show that improvements such as renovated bathrooms or updated kitchens can increase property value by up to 8.7%. Investing a few thousand dollars on the front end could help you not only sell your home quickly, but could help to draw in higher offers than if you ignored the upgrade. Since a CMA considers amenities such as full/half bathrooms, new appliances, garage sizes and additional upgrades, a comprehensive market analysis will shed light upon areas that can be improved and potentially increase value.

Sets a Reasonable Price Expectation
While you may have a ideal number in your mind of what you'd like to get for your home, it may not be a number that the current market can bare. Comparative Market Analyses can provide a realistic view of where the home should be priced, based upon the key data points reviewed. The last thing you want as a seller is to set the price too high, and not get any offers or receive what you feel are very low offers. By looking at realistic comparable properties, experienced agents can present a fair price that meets the current market demands, thus moving your home quickly through the purchasing process.

Provides Pertinent Information to Serious Buyers
A CMA helps buyers differentiate unique aspects of a property so it can be compared with other potential properties in the immediate area. By weighing price, amenities, location and other variables, the buyer is more informed and able to compare multiple factors involved in the purchase to help aid in their decision making. The more informed a buyer is, the more comfortable they'll feel about putting in an offer.

Getting a Competitive Market Analysis can help you be more prepared to get the most out of your property and give you a competitive advantage during the negation process. Our real estate team at the Lake of the Ozarks is dedicated to demonstrating the highest standard of negotiation, communication, integrity and professionalism. If you’re thinking about selling your home, contact the Fran Campbell Team to complete a Competitive Market Analysis and let’s get your home SOLD!

Real Estate Lake of the Ozarks: Find Your Dream Home Now! 

Fran Campbell Team


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