| Researching The Comp’s – Comparative Market Analysis (For Sellers)

One of the most important preparation tasks when selling your home is researching what price to set. You can’t just pick a figure out of the air and hope for the best.  You need to research what is called comparables (comp’s).

Your agent will normally use sophisticated software along with detailed local knowledge to provide you what is called a “Comparative Market Analysis” (CMA).

What is a CMA?
CMA is short for “Comparative Market Analysis” – It is a detailed report comparing a home to other similar homes in the same area that assists in ascertaining a fair market value for a home.

Producing an effective CMA is far more than simply running the numbers on an automated program.  By far the most important ingredient is “local knowledge”.  Your agent must be familiar with your neighbourhood and knowledgeable about both the historical and current sale values of real estate there.

Research Properties in your neighbourhood that are comparable to your property, & have recently sold.  It is important to compare with actual sold properties.  Not with list prices.  Properties are only worth what people will pay for them. 

Comps must also be comparable to yours in: 

  • Position (as close as possible)
  • Style
  • Age
  • Condition
  • Internal size 
  • Rooms, bathrooms etc
  • Land size
  • Gardens
  • Parking
  • Date of sale (the more recent the better)
  • etc

Obviously no two properties are identical, your agent will make adjustments for the differences between the sold properties and your property.

The CMA you receive from your agent should (at a minimum) include

  • The addresses of the comparable properties
  • Sold prices of each comparable property
  • Sold date of each comparable property
  • Land size
  • A photo and style of each property
  • The total square meterage of each home
  • The dollar amount per square metre
  • Number of bedrooms, baths, and garages

The final price calculated for your home also needs to take into account its unique features, local inventory, interest rates and how competitive the market is at the time.

Much more weighting needs to be given to “Sold” properties over “Listed” properties.  Listing prices only an indication of what the seller would like the property to sell for.  This is not always reflective of the true value. 

If your home is unique and very different, so much so that there are no real comparable properties, you may be best to have an independent professional valuer provide you a valuation.


Disclaimer:  Although all care is taken.  We do not give any warranty whatsoever to the accuracy of any content.
This is not meant to be financial or professional advice and is only of general nature.  You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever.  We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever

Gino Sotto

Residential Sales Agent
Raine & Horne Parramatta

P: 0426 228 014
E: gino@rhparramatta.com.au
W: raineandhorne.com.au/parramatta

TESTIMONIALS:

Gino’s professional attitude and friendly nature was a breath of fresh air.  Thank you for your support and professionalism throughout the sale of our property.  Appreciate the extraordinary lengths you went to to achieve an outstanding result!
Jeanne Appleton, Northmead. NSW

Excellent communication and great confidence when negotiating with buyers. Gino focussed his attention on achieving a sale price well above our expectations. Well done Gino and your selling team.
Ralph and Maryanne Pasero, Rydalmere NSW

I found the sales team at Raine and Horne Parramatta a pleasure to deal with. Their expertise and continuous updates in selling our home was outstanding. Great work Gino!
Rochelle and Casba Webb , Parramatta NSW

A genuine performance-based selling agent Gino Sotto helped us achieve a quick sale, which saved us a lot of time and money. We would not hesitate recommending Gino & his sales team to others.
Lawrence and Kim Davies . North Rocks NSW

We were delighted with Gino Sotto and the sales price achieved for our house and the specialist approach to selling residential real estate in our area.
Danny and Manal Ayoub Merrylands NSW