Regardless of your property type; residential, commercial, industrial or even personal property. Harrison Real Estate can assist you in an appraisal, Comparative Market Analysis or Broker’s Price Opinion of your property.
What is a Comparative Market Analysis?
Standard comparative market analysis reports contain the following data:
- Active Listings: Active listings are properties currently for sale. These listings matter only to the extent that they are your competition for buyers. They are not indicative of market value because sellers can ask whatever they want for their property. It doesn’t mean any of the prices are realistic. The offered sales prices do not reflect market value until they sell, and in buyer’s markets, for example, most sell for a lot less.
- Pending Listings: Pending sales are former active listings that are under contract. They have not yet closed, so they are not yet a comparable sale. Unless the listing agent is willing to share information about the pending sale — and many are not — you will not know the actual sold price until the transaction closes. However, pending sales do indicate the direction the market is moving. If your property is priced above the list price of these pending sales, you could face exposure time.
- Sold Listings: Properties that have closed within the past six months are your comparable sales. These are the sales an appraiser will use when appraising your property for the buyer, along with the pending sales (which will likely have closed by the time your property is sold). Look long and hard at the comparable sales because those are your market value.
- Off-Market / Withdrawn / Canceled: These are properties that were taken off the market for a variety of reasons. Usually the reason properties are removed from the market is because the prices were too high. The median prices of this group will almost always be higher than the median prices of comparable sales. However, listings cancel also for the following reasons:
- Seller’s remorse. The sellers decided they cannot part with their home and no longer want to sell.
- Priced too high. Nobody made an offer or the only offers received were low-ball offers, which were rejected.
- Agents sometimes withdraw listings so they can put them back as a new listing and fool buyers.
- Repair requests. The properties were once under contract and after the property inspection, the buyer requested repairs which the seller refused.
- Seller fired the agent. It’s not uncommon for unhappy sellers to fire an agent and hire a new agent.
- Expired Listings: This group will reflect the highest median sales price because they did not sell and were probably unreasonably priced. Some of the expired listings could also show up as an active listing, listed by a new agent at a new price. Listings also expire because they were not aggressively marketed or because the home was in need of repairs.