YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
The Similar Size Homes
Seeing these two properties and looking at our own home we can see that we are very similar. What we would do next is look at the details and make sure we don’t have anything that drastically different that could make us increase or decrease greatly in value. In this case we are strictly similar to these properties. Knowing this we can use these properties to help us find am assumed value based on the historical sales trend, I refer to this as a base price. We use the sold properties on the graph to create a trenline we call the Market Value Trendline, which you can see in solid red. This trendline can be used to help us find our base price by drawing a line from the square footage of our property up to that line (shown in dotted red above) then adjusting up or down to match the similar properties we identified ealier. You can see that the two similar properties are above the Market Value Trendline . If we split the difference of how far each of those similar properties are above the and move that amount to our square footage dotted line, we can establish a base price easily.
In this case we would safely assume that base price to be around:
$750,000
This is where most people stop and most other pricing models end, because this is the true comparative part of a Market Analysis . But this is not where we finish. Now we go to next level and start thinking like a buyer and really start the process of bringing in the market factors. We do this by incorporating the pricing and competitive range which lead us into positioning.
31
Made with FlippingBook - PDF hosting