Creating a Top Comparable Market Analysis
What to Do When You Have Too Few Comps
Determine the average percentage of increase in local market prices in the past year and increase older comparables by that amount.
Do a separate analysis using replacement costs for the property and factoring in the value of land in the area.
The comparable market analysis serves two major purposes during the listing:
- To establish your knowledge of the market in the prospects’ mind.
- To lay the groundwork for setting a realistic selling price for the property.
A comparable market analysis should include:
- All active, comparable properties in the neighborhood.
- All comparable properties that have sold within the last six months.
- All comparable listings in the neighborhood that have expired within the last six months.
- A summary of the pricing trends in the local and national real estate market over the last year.
- A summary of the average number of days on the market for comparable homes within the last year.
- Any available third-party data (check your local board) on market trends in your area.
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