What Is A Comparative Market Analysis in the Long Beach Island Real Estate Market
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Comparative Market Analysis (CMA) 
LBI Real Estate Comparative Market Analysis (CMA) 
LBI Real Estate Comparative Market Analysis (CMA)
Selling Long Beach Island Real Estate
An LBI real estate comparative market analysis also referred to as a CMA, is a study of the local real estate market. The CMA will be targeted to a specific property, usually referred to as the subject property, to identify the home’s value in the current market. When a local real estate agent on Long Beach Island conducts a CMA, he or she will use recently sold listings, as well as pending, active, and expired listings, to evaluate a home’s place in the market. A CMA in the LBI real estate market is a fundamental tool used by real estate agents when being asked to sell a home. While most would agree that comparative market analysis is used to sell a home, a buyer can and should ask for a CMA before making an offer on a home. This way, a buyer can determine if the listing price of a home is fair, high, or low. It is important to note that a comparative market analysis is not an appraisal. While an appraisal uses the same general methodology, an appraisal will be conducted by a licensed appraiser and is usually contacted by a bank.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Comparative Market Analysis (CMA)
When a Long Beach Island real estate agent is asked to conduct a CMA, the first step is to visit the home being evaluated. Every house on Long Beach Island is different, and in this hyper-local market, small differences can result in massive swings in value. For example, the same house may be found on the oceanside and bayside, but the location difference will result in a valuation difference of hundreds of thousands of dollars. These subtle differences must be appreciated to determine the correct value for a home. After the unique attributes of a home have been discussed, the real estate agent will weigh the subject property’s pros and cons to others that have recently sold. This is one of the areas where the real estate agent’s experience level comes into play. If the agent does not have an innate knowledge of the local market and the homes used as comparables, it is impossible to determine the correct value. We all know that pictures do not always tell the whole story, so if an agent has not visited the comparable homes in person, they will most likely get their valuation wrong. A seller in the LBI real estate market should also ask the potential listing agent if they have seen the homes in person and ask specific questions about the differences between the comparable homes and the subject property. That way, a seller can feel confident that the assessment is accurate. After the differences between the subject property and the comparable properties have been discussed, the agent will make a price recommendation. Above all else, a seller should interview multiple agents to ensure the recommended price is in line with the market. A comparative market analysis in the LBI real estate market will vary from agent to agent, and each will use their assessment method. By looking at the different approaches and how each agent arrived at their valuation, a seller can pick the number that makes the most sense.
What Is A Comparative Market Analysis in the Long Beach Island Real Estate Market
A comparative market analysis is a vital tool when selling a home in the LBI real estate market. It is a time tested approach to determining the value of a home in the LBI real estate market. While primarily used for sellers, a buyer should also ask for a comparative market analysis before placing an offer on a home so that they too can feel comfortable in the price they are offering to pay. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
You May Also Like:
Agency Disclosure in the Long Beach Island Real Estate Market
Agreement of Sale in the LBI Real Estate Market