1. Assess the Quality of the Neighborhood
Notice the more attractive blocks compared to the less attractive. Factor in the proximity to amenities such as beaches, schools, parks, etc. Account for the unpleasant things like highways, garbage dumps, industrial facilities, etc. Be aware of significant curb appeal issues.
2. Assess the Original Listing
Review the photos and description to evaluate the condition of the home, accounting for any recent upgrades and issues with the previous marketing strategy.
3. Check Property Value Estimates
An estimate can help you evaluate the potential market value of the home and give you a starting point for calculating the cost per square foot of the property.
4. Develop a Preliminary CMA
Create a rough idea of your home’s value by comparing sold listings, expired listings, active listings, and pending listings in the area. These listings should be comparable in features, size, and amenities.
5. Get an Average Price of Comparable Listings
After you’ve found the selling prices of comparable homes, divide each by their square footage to calculate the price per square foot. Then find the average price per square foot of the comparable homes and multiply it by the square footage of the home you’re trying to sell.
6. Assess the Home in Person
After all this research, you should have a rough estimate of the worth of the home. Tour the property and consider things such as; current condition, additions and upgrades, exterior and landscaping, and other amenities. Combine this data with the preliminary data to create a comprehensive CMA.
Example CMA:
A young couple is considering making an offer on a four-bedroom, three bath, 2,100-square-foot, single family home on a quarter acre of land. The house is listed at $300,000. The real estate agent would perform a CMA and locate three similar properties recently sold in the area:
1.The first is identical in every way to the subject property except that it is located on a busy road; it recently sold for $275,000.
2.The second has four bedrooms, three bathrooms, and is located on a quarter acre of land but is 2,400 square feet because it also includes a screened-in porch; it sold for $315,000.
3.The third has four bedrooms, is located on a quarter acre of land and is 2,100 square feet, but it only has two bathrooms, both of which are outdated; it sold for $265,000.