As real estate professionals in Milwaukee, we are always here to help you understand as a buyer how to determine the best value for your investment or as a seller to determine your asking price. We’ll guide you through analyzing a comparative market analysis, known as a CMA, as well as through housing reports. We invite you to reach out to us whenever considering a real estate transaction, with zero obligation!
In this article, we’ll be explaining what data is found in CMAs and housing reports. In short, any real estate professional should compare properties with similar features in the area, while also noting any differences between the properties. Also, a deep analysis should involve a second CMA, this time on listings in your area that are still active. This will help you create detailed housing reports on your property.
Keep in mind that the highest listing price isn’t always the best price. If you put the price too high, your house may remain on the listing for too long, which may let people think that something is wrong with it. You should never put the highest price as your asking price. This is why it’s important to understand housing reports and other data.
The most important aspect of CMAs is that it compares your property with the similar ones in Milwaukee‘s market. As it’s done by professionals, you can be sure that the numbers are credible.
First, let’s find what makes another property comparable to yours and how the calculation for housing reports is made.
How They Work
How to look at the sale date? Well, it’s simple. The more recent the sale date, the more precise the calculation. If the sale happened a few months ago, it could mess with your results. Especially in times such as these, when the market is quickly changing.
How close is the property in question located? Well, the best occasion would be if the property is nearby. However, in most occasions this is hardly the case. This is why your whole area of Milwaukee can be comparable. Once again, if there aren’t any, properties that are more distant can be considered, but this makes the report less precise.
Why was each of the comparables chosen? A deciding factor in the selection of comps for the housing reports is how closely the property matches yours in size, rooms, and amenities. Missing the mark in this process can seriously alter the outcome of your CMA.
Unless you live in a neighborhood where you can’t tell the houses apart, exact comps are very rare. This data is calculated by the current value of each to the overall price point of a home.
How are the comp variable values determined? Considering how rarely duplicate properties are available for comps, it’s important to understand how the values assigned to the differences between the two.
Does the property being considered have a two-car garage, while yours has only a one-car garage? In this event, the difference in value would need to be subtracted. What if there is one bedroom less in the comp property than your home? The value for the additional bedroom would need to be added in order to figure the market value in Milwaukee.
The square footage is only considered at the end of the process, as this number doesn’t truly express the value of what structures and additional amenities are actually found within the given area.
Once all of the differences are added or subtracted from the bottom line, then this figure is divided by the actual square footage, which determines the value per square foot for your home in Milwaukee.
Putting It All Together
Averaging the square foot price from all three, or more, of the properties being used for comparison, gives us the number which is multiplied by the square footage in your home, to determine what your house is worth in Milwaukee.
As real estate professionals, we are experts at digging into the data a CMA provides, we’re on top of current market trends and experienced in determining the right price for the home you are selling or buying.
Equity builds up in a home over time and as real estate professionals, we don’t want to see you lose out on any of your hard-earned dollars. Just as our professionals have built the credibility you can depend on over time in Milwaukee, through education and experience.
If you are considering selling on your own, don’t go it on your own only to find out after the fact that a very similar house in your area sold for much more.
Just as it would be painful for you to learn subsequently that you’ve overpaid, most especially when making what may very well be the largest investment of your life. Why take the risk of making a mistake that could literally cost you thousands in the long run?