Sage-Tips

How do you do a real estate market analysis?

Select comparables for your real estate market analysis When selecting comparables for your subject property look for: Homes with the same number of bedrooms and bathrooms. Houses having square footage within 10\% to 20\% of your intended purchase. Property with a similar lot size and shape.

Do real estate agents do market analysis?

What Is A Comparative Market Analysis (CMA) In Real Estate? A comparative market analysis is a tool that real estate agents use to estimate the value of a specific property by evaluating similar ones that have recently sold in the same area.

Can I do my own market analysis?

1 Individuals can perform their own comparative market analysis by researching comparable properties (known as “comps”) on real estate listing sites, such as realtor.com.

How is housing market measured?

Here, we look at eight important economic indicators related to the housing market.

1. Construction Spending.
2. Home Sales.
3. State-level Home Sales Reports.
4. New Home Sales.
5. Pending Sales.
6. NAHB’s Housing Market Index.
7. Regional Price Indices.
8. The Bottom Line.

How do I get a free comparative market analysis?

Where to Get a Comparative Market Analysis

1. Visiting Websites With CMA Information. Some websites, such as realtor.com, offer comparative market information for free.
2. Hiring Professional Real Estate Appraiser.
3. Going to Open Houses.

Is a market analysis free?

A CMA is how an agent arrives at a listing price, and they provide CMAs as part of their listing services. So yes, you can get a free CMA, even if you’re not ready to sell at the moment.

What makes a good real estate market?

In good housing markets, home sales and home prices tend to rise together, more or less. A good housing market itself features rises in average home sale prices along with increases in total sales numbers. Home sellers in good housing markets also tend to sell their homes at or very near their listing prices, too.

What are real estate indicators?

Housing market indicators are sets of residential data that provide insights into how residents live and pay their mortgages. Both first-time home buyers and investors can gain valuable insights from housing indicator data, including where to live and how much they can expect to pay.

How is real estate demand measured?

To calculate this, divide the total number of available homes by the number of homes sold over the given time frame. Using the first example above, you would divide 1,000 by 250, which means it would take just four months for that market to run out of homes for sale.

Can I do my own comparative market analysis?

A comparative market analysis (CMA) is an estimate of a home’s value based on recently sold, similar properties in the immediate area. 1 Individuals can perform their own comparative market analysis by researching comparable properties (known as “comps”) on real estate listing sites, such as realtor.com.

What is the difference between a market analysis and an appraisal?

In simple terms, a real estate market analysis lets you and your real estate agent know how much similar properties to yours in the same geographic area are selling for, while a real estate appraisal is the value your individual property has, according to a licensed, professional appraiser.

How to do a real estate market analysis for an investment property?

A real estate market analysis for an investment property follows the same principles as for a residential property. Basically, you will need to gather data on properties in your area comparable to your property that are currently listed for selling or have been recently sold. 1. The first step is property analysis.

How to research a city’s real estate market?

When analyzing a city’s real estate market, you should be looking into indicators like average rental income, average CoC return, and average median home price. General city data is very important in the first stages of figuring out how to research real estate markets.

How do you estimate the market value of a house?

Utilize online resources like Zillow Zestimates to give you the estimated market value of the home. As these are market value estimates, they may not be totally accurate, especially if changes have been made to the home. But this will provide a good starting number to go off of as you continue your real estate market analysis.

What are the best sources for real estate analytics?

Here are a few reliable sources for real estate analytics: The Federal Housing Finance Agency (FHFA) website is a useful tool in your market analysis as it has data on recently concluded sales within a region including all home mortgages backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration;