BENEFITS OF COMPARATIVE MARKET ANALYSIS TO REAL ESTATE INVESTORS

Posted on Friday, September 25, 2020

BENEFITS OF COMPARATIVE MARKET ANALYSIS TO REAL ESTATE INVESTORS

A comparative market analysis (CMA) is very vital whether as someone who wants to buy real estate or sell real estate. A CMA helps the buyer check the value of the property before he buys the property while for the seller it helps determine the price range for his home before listing it on the market. There are a number of property valuation methods, but the most common and accurate way to pinpoint house value is to run a thorough comparative market analysis.

A CMA is basically an in-depth report on a property’s current value. It is the thorough knowledge of the dynamics of property sales in a specific area, which is required to make judgments based on the data presented.

BENEFIT OF COMPARATIVE MARKET ANALYSIS TO A REAL ESTATE SELLER

This comparative market analysis helps the real estate seller to know the worth of his/her property in the housing market because neglecting this analysis will lead to either of these situations; he/she will set the market value of the property too high which may lead to not finding a buyer or the market value too low and this will lead to missing out on a good return on investment they could have had.

This analysis is essential and beneficial to ensure that you as a real estate seller list your property at the right market price to guarantee selling your property and a good return on investment.

BENEFIT OF COMPARATIVE MARKET ANALYSIS TO A REAL ESTATE BUYER

Comparative market analysis is also very vital to a real estate buyer. He/she needs to know the value of the property to avoid making the mistake of overpaying for a property. In addition, when searching for a property without the help of comparative market analysis he/she might miss out on great investments. For instance, if the real estate buyer knows that a property is below market value, he/she will realise that buying and flipping it will give a good and instant return on investment. On the other hand, when the real estate buyer does not have this information about the property market value, he/she may take the wrong decision that won’t bring in a quick return on investment which would have been prevented with comparative market analysis.

As a real estate investor, it’s important to know the value of your investment property because this will guide you find the best properties and make smart investment decisions. This is why performing comparative market analysis is key to a successful real estate investing career. For beginner property investors, this might seem like an overwhelming process, but with experience, performing comparative market analysis will become second nature.

At KingsCourt Realtors, we meticulously guide our investors to make wise decisions either when buying or selling real estate by conducting detailed comparative market analysis. Contact us today on 09090408603 or info@kingscourtrealtors.com as we provide our investors with detailed comparative market analysis to ease the investment process.

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