How to Do Market Research for Your Home Market Analysis

1. Research neighborhood quality and amenities. …
2. Obtain property value estimates for the area. …
3. Select comparables for your real estate market analysis. …
4. Calculate average price of comparable listings. …
5. Fine-tune your market analysis with adjustments to your comparables.

What is a Real Estate Market Analysis?

A real estate market analysis is often called a comparative market analysis (CMA). It’s basically an analysis of the current market values of properties, comparable to a property you are looking to buy or sell. A CMA is a helpful tool to determine the market value of your own property, especially if you are trying to decide an accurate selling price prior to listing.

Something important to note is that a real estate market analysis is different than an appraised value, which is determined by a professional appraiser. A comparable market analysis is considered subjective and gives the seller information on the value of similar houses in the area.

While there are many factors to take into account when performing a real estate market analysis, it is completely manageable with an organized approach.

Your real estate agent may conduct a CMA for you to determine what price to list when selling or a price to offer when buying a home. Because no two properties are exactly the same, adjustments must be made to account for differences.

How to Do a Real Estate Market Analysis – 7 Steps