Introduction
A comparative market analysis is a comparison of the price at which comparable assets and properties in the same neighbourhood were sold in recent times. Real estate agents generally do this analysis for their customers to help them arrive at a fair price when they are about to list their property for sale on a platform.
As it is hard to find an identical or similar property in the neighbourhood, real estate specialists and agents will adjust the difference and arrive at the best possible offer for sale price. Necessarily, a comparative market analysis is a simple and straightforward method of appraisal.
Understanding Comparative Market Analysis
Comparative market analysis can cover properties that are currently listed. This is very important, especially when there are no similar properties sold in recent times. One thing to note here is that the listing price reflects the price which the property owner is expecting, and this may not be the actual worth of the property. Buyers are advised to do their research; if not, they will end up paying a lot more than what they should have.
Never Depend Only on Comparative Market Analysis
The comparative market analysis cannot be considered as an authentic appraisal, but the real estate agents will, however, use it as a general practice to help their customers arrive at a price for their property to be listed at.
If a property owner does not find any similar property listed recently, then it is advisable for him or her to avail the services of a professional evaluator or surveyor to arrive at the best and fair price of the property.
For buyers, if the actual price of the property is not known, then they should make use of the comparative market analysis and seek the help of a professional who evaluates properties. Relying just on the comparative market analysis is not advisable as there can be discrepancies and personal favours from the property owners leading to real estate agents tweaking the numbers as requested.
