As real estate professionals in Norfolk, we are always here to help you understand as a buyer how to determine the best value for your investment or as a seller to determine your asking price. We’ll guide you through analyzing a housing reports, known as a CMA. We invite you to reach out to us whenever considering a real estate transaction, with zero obligation!
We’ll be digging into the data found in CMAs and housing reports. First, a real estate professional should compare similar properties that have recently sold in your area, which takes into account any differences in the property. A thorough analysis should also involve a second CMA, on active listings near you.
The highest listing price isn’t always the best listing price! As you may be aware, longer listing periods tend to indicate something is wrong; don’t let it be your asking price. By letting us guide you through the data, you can be certain the asking price is right.
An essential aspect of CMAs is that the properties compared are those which most closely match your listing in Norfolk. By working with our experienced real estate professionals, you can rely on our word and be assured the numbers are credible.
Let’s begin by digging into what makes another property contain the right data to be comparable for use in your CMA.
How They Work
What was the sale date? Quite simply, the more recent the sale date, the better. Numbers on sales from even a few months ago could skew your results, especially when the market is changing at a quick pace.
How closely is the property under consideration located? Naturally, the ability to analyze comps in your neighborhood is the ideal situation but for most of us, this isn’t going to be the case. The next best comps will be found in the areas in Norfolk surrounding you. Should there be none, pricing from more distant areas that most closely compare to yours would be used for the CMA.
Why was each of the comparables chosen? A deciding factor in the selection of comps is how closely the property matches yours in size, rooms, and amenities. Missing the mark in this process can seriously alter the outcome of your CMA.
Unless you live in a neighborhood where you can’t tell the houses apart, exact comps are very rare. This data is calculated by the current value of each to the overall price point of a home.
How are the comp variable values determined? Considering how rarely duplicate properties are available for comps, it’s important to understand how the values assigned to the differences between the two.
Does the property being considered have a two-car garage, while yours has only a one-car garage? In this event, the difference in value would need to be subtracted. What if there is one bedroom less in the comp property than your home? The value for the additional bedroom would need to be added in order to figure the market value in Norfolk.
The square footage is only considered at the end of the process, as this number doesn’t truly express the value of what structures and additional amenities are actually found within the given area.
Once all of the differences are added or subtracted from the bottom line, then this figure is divided by the actual square footage, which determines the value per square foot for your home in Norfolk.
Putting It All Together
Averaging the square foot price from all three, or more, of the properties being used for comparison, gives us the number which is multiplied by the square footage in your home, to determine what your house is worth in Norfolk.
As real estate professionals, we are experts at digging into the data a CMA provides, we’re on top of current market trends and experienced in determining the right price for the home you are selling or buying.
Equity builds up in a home over time and as real estate professionals, we don’t want to see you lose out on any of your hard-earned dollars. Just as our professionals have built the credibility you can depend on over time in Norfolk, through education and experience.
If you are considering selling on your own, don’t go it on your own only to find out after the fact that a very similar house in your area sold for much more.
Just as it would be painful for you to learn subsequently that you’ve overpaid, most especially when making what may very well be the largest investment of your life. Why take the risk of making a mistake that could literally cost you thousands in the long run?