When real estate professionals help sellers create property listing prices for their home, they use a comparative market analysis (CMA) to determine price estimates for the home’s value. The forecasts within the research come from collected data about properties in the immediate area.
A CMA helps buyers and sellers, giving people a starting point for creating an accurate sale price and making competitive offers for purchase. For houses for sale by the owner in Miami-Dade County, a listing agent isn’t necessary to make a CMA. Homeowners can create their own market analysis by following the steps below.
1. Collect Data About Your Property
Before you can determine the home’s value, you must know as much about the property as possible. You can’t accurately compare the property to others like it unless you understand its characteristics.
Some of the essential information to consider are:
● The complete address of your property, including its county and municipality
● The size of your property and its total square footage
● The construction year
● Details about recent renovations such as the home improvement type and year
● Notable interior finishes
● Standout features like volume ceilings, security gates, swimming pools, decks, etc.
2. Have Local Tax Information on Hand
It’s not uncommon for municipalities to have multiple tax rates. As you compare your home to others, it’s best to know the local tax rates because they can affect how much a homeowner pays each month.
As you collect tax information, keep in mind your property’s assessed value. The assessed value is the accepted dollar value of a house, and it helps calculate property tax rates. You can compare your data to that number for the sake of accuracy.
It also helps to consider the millage rate. The higher the rate, the higher the new homeowner’s property tax rate will be. However, homes with higher tax rates typically have a lower value.
3. Find the Property’s Previous Listing Information
When creating a CMA, you can use the market’s recently sold listings to get a solid idea of your home’s value. Sold data is necessary when valuing a house because it tracks trends. The speed and rate at which a house sells could indicate high demand for the property and its potential to sell for a higher amount.
Most multiple listing services (MLS) retain the history of every listing, so it’s possible to see how long a home took to close. MLS are online databases that real estate brokers use to share information. When gathering listing information, document the list price, final sale price, adjustments, and days on the market.
4. Evaluate Recent Sales in the Area
Now that you have details about your home, it’s time to look at other properties like yours in the area. That information will tell you and potential buyers about the most recent market trends for homes like yours.
Compare from three to five properties to yours using the details you collected in the first step. However, only go back one year because you want the most recent sales data available.
5. Evaluate Comparable Homes for Sale
Next, examine homes currently for sale to show how the market reacts to properties like yours today. Focus on three to five houses listed for sale today that have similar characteristics to your property. If the properties are in a close enough range to your home, you can estimate the value adjustment to make yours similar in price.
6. Examine Micro Market Trends of the Property
Microtrends refer to activities happening in the neighborhood, like road repair or new home construction. Even if the market trends for your community are high, the micro-market will decrease or increase the final value of your home on the CMA, depending on the trend type.
For instance, road construction can decrease the property value, while a 24-hour concierge service on the property will drive the value up.
7. Put CMA Data Together
Finally, format your data into a comprehensive comparative market analysis. Begin with the property’s history, including its prior sales amount and whether median prices have increased or decreased.
Next, consider the comparable values from recently sold homes, current listings, and microtrends. You should end with three figures based on:
● The home’s sale history
● Your estimated value from past sales comparisons
● Your prediction based on current market trends
Feature these figures from lowest to highest to complete your market analysis.
Save Money and Sell Your Miami-Dade Property With Abode1
Even if you intend to list your property for sale by the owner, you don’t have to go through the process alone. Instead, choose to work with an agent from Abode1 and receive professional guidance throughout the home selling process.
Abode1 helps homeowners selling their houses attract potential buyers. Backed by decades of Miami-Dade real estate experience, our team handles everything from MLS listings to creating yard signs and virtual tour videos, along with other tools realtors use to sell homes, all for a flat 1% commission fee. We have the experience and resources necessary to complete a professional CMA to maximize the price for your home and closely assist you throughout the entire process to successfully close the deal.
Copyright © 2021. Abode1. All rights reserved.