Ever wondered how real estate investors, agents and buyers/sellers value a property?
A Comparable Market Analysis is a very effective and commonly used tool for determining the value of real estate. The first step of every CMA is to identify the price per square foot of comparable properties which feature many of the same characteristics (such as location and size) of the property you are looking to value. The second step of a CMA consists of making adjustments to the price per square foot to accurately reflect the unique features of the property in question. Once the adjustments have been made, the value of the property can be calculated by taking the adjusted price per square foot you calculated and multiplying it by the property’s square footage.
Courtesy of: Mountsquarerealty
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