Real estate property transaction is a way to get quick rich that too in less time. This is the biggest myth what people carry in their mind. But they often underestimate the task that needs to be done before, during and after selling, buying or renting the real estate property. As you have to find the actual market value of your property first and then decide the asking price of the property for selling or renting. For all this property market analysis becomes obligatory. To know the actual market value of the property you can hire a residential property valuer too. They know well about the real estate property world.
Here in this post, we will share some information related to comparative market analysis-
What is CMA -
It is the measure taken to determine the actual market value of the property. As the name suggests comparative market analysis i.e CMA. First, you have to make the analysis of the property whose value is to be evaluated. Then make a research in the market to find the similar property sold in the recent time located in the same area i.e Comparable property. Find the comparables to compare and to evaluate the property value.
Importance of Comparative market analysis -
The comparative market analysis is important when buying, renting, selling the property. The motto of the comparative market analysis is to find the property value based on intense and accurate market research. Comparison of comparables makes it easy to find the property value.
Method of property valuation apart from CMA -
The comparative market analysis method is the best way to evaluate the property worth. As it based on market analysis and thorough research. The second best method of finding the property worth is via a property appraisal method or residential property valuation Brisbane method. In this property, appraiser inspects the property evaluates the ins and outs of it. Calculate the value of land, construction cost, and everything by keeping the objectives into consideration. Which is openly accepted to solve the legal and financial issues. Property appraisal deals with specific purpose whereas comparative market analysis is done to find the rental value of the investment property.
How to perform the comparative market analysis -
Here are the steps of CMA -
Find the Location - Find an investment property. Study and do some research before buying an investment property in the desired location. Searching an investment property to make a profitable deal is the first step of the comparative market analysis.
Value of the property - Conduct an investment property analysis to know the rental value of the property. This needs to study the property’s feature like - Location, area, square footage, amenities, bedrooms, bathrooms, property type etc. Thus residential property valuer can estimate the property value through these features.
Find comparables and Compare them - Study the near area of the subject property to evaluate its value. Find the comparables and then compare to evaluate the property’s rental value.
This is about the CMA. For best residential valuation services contact us.