Real estate market analysis is the way of finding the present-day value of any property, land, buildings related to the property you want to put up for sale or you want to purchase. It is also known as comparative market analysis (CMA). To do analysis is very important because when you purchasing a property it is not a wasting of money it is a way of making money. So, before purchasing or selling any property, it is crucial to know the actual worth of the property. CMA must be conducted for a fair deal for both seller and buyer.
Here are some points to consider, Doing a Real Estate Analysis
1. Survey the Neighbourhood and Inspect the Property
The main and first step in the analysis of real estate is to find the qualities and facilities of the area around your property. If it is not possible for you to visit the area for analysis you can use online means Google map. Sometimes Google map shows out of date so it is difficult for you to find accurate information.
If you want to buy a house, you should the number of rooms, number of floors, their size, etc. Other amenities that increase the value include a garden, swimming pool, balcony, fireplace, etc.
Notice the distance from house to local amenities like parks, schools, public transport. It matters a lot. It is also essential to notice if a property is near undesirable sites for example industries, a garbage dump.
2. Get the Estimated Price
When you have done with your survey and analyze the property. There are many sources through which you can get an original listing price including
- Local real estate agents
- Online listing databases
- Property management companies, and etc
Online resources are also the best way of finding an average value for a property. Calculating the value price is done by various methods like the average price per square foot for a home sale, etc.
3. Research and Assess Comparable
Look for a property that is similar to your property for comparison purposes. The comparable property must be located in the neighborhood, the comparable property should have the same lot size and shape, should have an equal number of bedrooms and bathrooms, the home has the same features and building material. The construction date is also important to notice, find homes sold in the last three months, search for listing online, and look for three to five similar properties. These factors might help you to find an accurate value.
You can get information from the federal housing finance agency (FHFA) as this platform has data of properties that are sold within the last few months in various regions. Some other well-known websites that deal with real estate are Zillow, Trulia, Redfin from where you can check prices of newly sold properties.
4. Estimate an Average Price:
After gathered information with the aid above steps, Select some comparable, now make a list of prices of every features and amenities of the house separately, then sum up and calculate the values. This process is done for three or more than three comparable.
5. Survey to The House Personally
Before fixing a specific price, visiting and accessing the home is an important way of analyzing. You can observe the exact condition of the house when you walk through the house. Inspect the overall condition including roof, plumbing, electric wiring, doors and windows, other amenities, and all other upgrades and repairs. Notice the landscaping and external conditions, they also affect the value.
6. Finalize the Market Valve
When you have compiled all the important information, now is the time to decide the market value. Calculate everything you observed during your visit to the house like repairing. Search the selling price of the comparable and establish an average value and calculate and decide the price at which your property falls.
To find the present value of the property is very important to do a Real estate market analysis especially you are going to buy a new home/land. Although you can get help from any real state agent you still must have some knowledge about it. You can look for the points like Neighbourhood and Inspect the property, research and assess comparable, estimate an average price, survey to the house personally, get the estimated Price, finalize the market valve. These important factors can help you find the best property for you.