There is nothing difficult about this process, the hardest part is finding like properties. You may have to revise your search criteria a number of times before finding the right homes.
If you cannot come up with a value, call the listing agent and ask which comps he/she used to establish the listing price. Just because they came up with a price though doesn’t mean it is right!
Below are the simple steps, but you may have to do several of them, several times, before you are satisfied that you have the right value for the property.
A comparative analysis is comparing the subject property to the ones that have sold. In order to do that, the subject property remains the constant, and the sold properties are adjusted to match the subject. It is a matter of “take-away” and “add-to”. If the subject property has 3 bedrooms and a sold does not, add the applicable dollar amount to bring the sold up to 3 bedrooms.
1. Go to the county tax assessor’s office and pull up the property. (The information may not be quite right because if the sellers did any upgrades or additions without the required permits, those will not show up in the public records. You are looking for square footage, legal description, ownership names, year of construction, etc.
3. Go to the MLS website and sign in.
4. Realist Tax Information should be the same as what you found on the county website, but it may be different, so look at both sources.
5. Click on Active, Under Contract and Sold Status – Generally I use the last 3 months within 1/2 mile of the property. If that doesn’t work, try 6 months and 1 mile range.
6. Click on the Type of home and the Style
7. Then, go to the Map Search and type in the street address in the box next to My Location. When the results come up, look at the map layout and determine which homes do not belong. For example, homes on the west side of Wadsworth may not be comparable to the ones on the east side. Try to stay within specific neighborhoods.
8. Save the listings on your computer for later use.
9. Look at the sold listings only. You want to make sure that the square footage is close, if the house is updated or is a fix up. You will make adjustments for the differences.
10. Check listing history for any prior information or sales of that particular property.Print out all pertinent information
11. On the printout from the assessor or PDC report, highlight the major features of the home. Do the same for the comparables.
12. Go to your property search program and log in. Use Matrix.
13. Print the photos (print to your desktop) and take a look at them to see if they closely resemble the subject property.
14. Take into account any upgrades that have been done to the various properties including the subject property. These may be worth quite a bit more than the average home.
15. Depending on the CMA program you are using, you might need to adjust the CMA sold price by the dollar amount of the seller concessions given to the sold properties. Matrix automatically does this for you.
16. Once you are comfortable with the results, save the CMA.
17. If the asking price and the price your CMA has is drastically different ($5K or more), please call me before sending it to the client.
18. Caution the buyer, about using the price per square foot as it is just one part of the analysis process.
19. Explain to the buyer that the Zillow – Zestimate, the value given on the county website are NOT market value prices.
20. Good luck!