Competitive Market Analysis VS Comparative Market Analysis
Which approach is the most effective? A Comparative Market Analysis emphasizes the closest comparable sales in the recent months. I personally prefer the Competitive Market Analysis approach which takes into consideration the number of competing homes on the market. Individual markets are changing all the time. This method shows a picture of the competition... or the homes that a buyer most probably view along with the subject property. Viewing a competitive price line will help you to price your home in the best position. We know that buyers will comparison shop. What position do you want your home to be in? Also a seller must be aware of the absorption rate. In other words...how many months of inventory is currently available for sale in a specific area and price range. This is a key to knowing where to price your home. If there is very little competition, and history shows that in the past year there have been a number of homes per month sold in that same price range and market area, the seller may be confidant enough to edge the price up a bit. Ask a Coldwell Banker agent to help you determine the best price to list your home by offering you a Competitive Market Analysis. Remember that all markets are different. Let us help you to understand your market.