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Buying a Home Tips
Before You Buy
Preparing to Buy
Home Buying Process
12 Things to Know
Real Estate Agency
Buyer Representation
Competitive Market Analysis
A Winning Offer
Home Warranties
Home Inspections
Title Insurance
What is an Escrow?
What happens at Closing
Closing Costs
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Southern California Realtors
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The market value of a property is the price buyers are willing to pay and sellers are willing to accept. Real estate professionals and appraisers estimate the value of property by using comparable sales in the same area of the property. The sales data used is within the last 6 months.
Single Family Homes vs Condos: How are they evaluated?
Single family homes are compared differently then condos. Sales of homes need to be in similar neighborhoods within a given city. Condo sales have to be within the same building or complex.
Your home's living square footage is considered...but the garage is excluded from this measurement.
- How much homes similar to yours have sold for within the last 6 months
- Compares bedrooms, bathrooms, living square footage
- How many days were they on market before they sold.
- Pay attention to the difference between the list price and sales price
- The three most recent sales that are similar are helpful to make a final estimate
An example of comparable sales:
|
Address
|
City
|
List Price
|
Sold Price
|
Beds
|
Baths
|
Sqft
|
$ per Sqft
|
Sold
Date
|
DOM
|
| 225 Wagon |
Laguna |
$505,000 |
$489,000 |
3 |
2 |
1400 |
$349 |
8/31/2006 |
34
|
| 234 Wagon |
Laguna |
$489,000 |
$489,000 |
3 |
2 |
1300 |
$383 |
8/31/2006 |
77
|
| 232 Wagon |
Laguna |
$525,000 |
$485,000 |
3 |
2 |
1213 |
$400 |
8/22/2006 |
133
|
| Average |
|
$506,333 |
$487,667 |
|
|
1304 |
$ 377
|
|
81
|
Competitive Market Analysis (CMA) Tip:
Once you select the home you want to buy, your Realtor®, will prepare a CMA as provided to you above so you can make the best offer possible to purchase it. Then, when you look at the most recent sales, notice the difference between the list price and the sales price. In this example, the properties sold for 96.31% of the listing price. It is usually 2 to 3 % lower if it is a buyer's market and higher if it is a seller's market. Your real estate professional is your best advocate when in comes to accurate pricing for the offer that you desire to make.
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