Making Use of CMA For Real Estate

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Many millions of Americans own houses, and sometimes, they are ready to sell those properties. A house, and the land that it sits on, is a major piece of property. Buying or selling it is a complicated and hefty undertaking, but with the right strategies in mind and professional guidance from a real estate agent, it can be done. For a home seller, there are many factors to juggle, and of course a major one is: how much to sell the house for? A price too low can result in a major loss of money, and a too-high price may make the home unattractive to buyers. A homeowner can find the right balance with the help of a real estate agent who can use certain programs to calculate such matters. Comparative market analysis (CMA), for example, allows a homeowner and a real estate agent figure out the right price for a home, and realtor CMA software can be used for this job. CMA reports may come in regularly to update the homeowner on the current home price. How can comparative market analysis help, and what does the real estate market look like today?

Americans and Houses

The real estate market has experienced some changes in the last few years, and although it hit a low point in the year 2016, it may be recovering. What should someone who’s looking to buy or sell a home expect? This is a huge market, and the total value of all American homes is close to $31.8 trillion, and the top 10 highest-value metro areas are worth 36% of the total American housing stock. Properties there may tend to be more expensive, in places such as Chicago or New York City or San Francisco, putting them out of reach of some households. There was certainly some recovery from the 2008 housing crash, which may be encouraging to many. Median home prices went up 16.9% from $177,000 in 2008 up to $207,000 as of 2017. And as of February 2018, according to the Census Bureau, median sales prices of new homes was $326,800 or so.

Who is buying these homes? Often, older Americans are most able to afford housing property, and they also spend the most on remodeling work in their current homes. However, younger home buyers are catching up. Those of the Millennial generation, born 1982-1995, are now old enough to afford major life purchases such as cars and houses, and therefore, marketers keep careful track of the Millennials’ spending habits and preferences. This generation is a minority among home buyers, but they may grow substantially in the next few years. A decade from now, the same scenario may play out for those of Generation Z, born 1996-2010. Meanwhile, how can a homeowner price their property fairly on the market?

Comparative Market Analysis

What exactly is comparative market analysis, anyway? This means that a homeowner can enlist the aid of a real estate agent and make use of their software that calculates real estate prices and trends. To start, a homeowner’s own house will be factored into the comparative market analysis software, in terms of its size, appearance, features, and more to create a sort of “profile” for it. Now, this profile can be compared to similar properties in the local area, and those other properties will have their own estimated valued listed. Some of those properties may have already sold recently for a certain price, or they are currently on the market for certain prices. A homeowner may choose to omit houses that have already sold, or omit those currently for sale if they feel the need.

In this way, a homeowner will have ample reference for how to set their home’s price. The homeowner can get as close as possible to a fair price on their home without going over or under, since an overpriced house won’t sell and a seriously under-priced house represents a major financial loss. The homeowner can also factor in any landscaping or remodeling work for their property. In nearly all cases, landscaping and remodeling work drive up the property’ value and make it more appealing to buyers. Such properties tend to sell faster, too, and are more distinctive on the real estate market.

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