What is the Comparative Market Analysis?
Are you interested in land for sale in Charlotte County, FL? Land for farming, ranching, development, timber, or other agricultural needs continue to be a good investment because prices are good for buyers. A comparative market analysis is a resource for your land buying needs because it is a report assembled by a real estate professional to establish a property’s market value. Here is everything you need to know about the comparative market analysis.
It Establishes the Market Value
When deciding what dollar value to purchase property at, check the market value before making an offer. Using comparable categories, the comparative market analysis is performed by real estate agents to establish the property’s market value. You should not consider it the same as an appraisal.
Sold Property Analysis
Your real estate professional will have to access sold property records and choose ones that are similar to the property and in the same area. By comparing these sold properties, and adjusting the value for feature differences, an estimate of value can be made for the property of interest.
Listed Property Analysis
A thorough comparative market analysis will include comparisons of currently listed and similar properties in the area. It’s the same categories and process as before but it is a better gauge of what the market is doing. This assessment of the current competition may show an increase or decrease in the estimate previously based on sold properties.
What Does it Factor In?
Your comparative market analysis should factor most, if not all of the following:
• Properties sold, expired, sale pending, or listed in the past six months
• Properties within roughly the same size lot
• Properties that are in the same vicinity
• Properties within 10-25 years as yours
After you obtain the comparative market analysis, you should try to tour the property to see if there are any hidden issues regarding condition and improvements that will affect the sales price. It is important to note that the comparative market analysis does not substitute a walk through because most major issues won’t be evident from the value depicted of the home.