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Wenzel Select Properties Newsletter-Vol 11 Issue 2


What Is a Comparative Market Analysis?

A Comparative Market Analysis (CMA) is routinely done for sellers to determine a listing price for their home based on current market conditions. Knowing how a CMA is created will help you understand why it's so valuable in finding a home's market value.

Comparables (Comps) Are Selected
The listing agent locates three or more recently sold homes comparable to the one ready to be listed. The best comps will:


Be as near as possible to the home ready to be listed (same neighborhood, if possible).

Have the same features or as near as possible (bedrooms, baths, garage, etc.).

Sold as recently as possible, because the older the sale, the less reliable the CMA.

Sold Prices Are Adjusted
The sold price is adjusted to account for differences in features or characteristics. If the comp has one less bedroom, the value of a bedroom is appraised or estimated and added to the sold price. If the comp has one extra bedroom, the value would be deducted from the sold price. This brings the total sold price to an estimated amount based on if the comp had identical characteristics with the home in question.

Average Sold Price per Square Foot
Once the adjusted sold prices are calculated, they are averaged to find the average sold price per square foot. This number is multiplied by the square footage of the home ready to be listed to establish a tentative listing price.

There are several variables that make this an exercise in estimation, not a nailed-down price. It is as accurate as possible based on the comps selected, but there is some flexibility in the final pricing.

Want to know what your home is worth in the current market? Contact me today for a CMA.

Managing Broker: Lisa Wenzel - 630 430-4797

Broker: Melissa Mathis – 630 392-5171

Broker: Freddy Wenzel - 630 750-4797

Broker: Danny Reed - 708 703-4653

Broker: Kristine Emmel - 847 489-8965

Broker: Catherine Lopez - 630 981-4572

Broker: Michaela Valle – 630 946-4269

Broker: April Stary – 630 962-4820

Broker: Nina Rodriguez – 224 587-0780

Broker: Eumeka Aguado - 847 513-4433
Team Wenzel, 1120 Norfolk Street, Downers Grove IL 60516
The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.

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