A Guide to Home Value with Comparative Market Analysis
Comparative market analysis focuses on the homes in your surrounding area and how they compare to yours in value. This will provide the seller, buyer, or real estate agent with a reasonable value for purchasing or pricing your property. Here is a 5 step guide explaining how you can use comparative market analysis to value your own home.
1. Set Criteria
List out the following criteria when comparing properties.
Type of Property – Compare homes to homes and condos to condos.
Location – Look at the same neighborhood and school district when possible.
Size – Square footage comparable should be within 15% of your home.
Age and Style – Similar styles and age groups.
Beds/Baths - Compare homes with similar number of bedrooms and baths when possible.
Date of Sale – As recent as possible, within 3 months or a max of 6 months.
Condition – Use tools online such as Google Street to judge the condition of the area with comparable.
Lot Size – Use comparable with similar lot sizes as yours.
2. Locate Homes
Sites such as Movoto, Redfin, and Zillow can help with locating homes within your area.
3. Compare Homes
When comparing homes, be sure to keep the above criteria in mind. If the home has to many bedrooms or is to big than it cannot be an effective comparable.
4. Identify Best Matches
Look for homes that just sold or the same type to identify the best matches in preforming comparables with.
5. Determine Value
Estimate the value based on your best matches used. Normally these vary in price between tiers which means your home should fit within that spectrum as well.
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