Buying and selling the property is not the only task that investor possesses. To become a successful real estate property investor you should understand the relationship the between real estate property market and real estate property price. How property market fluctuates the property price. The comparative market analysis gives you an insight of selling and buying the properties which help investors to take an informed decision. Usually, residential property valuers consider it an important component in understanding the real estate property market.
As to determine the actual value of the property first find a similar property located in the same location and recently sold i.e in the past few months. These kinds of properties are comparables. It is an essential component of the comparative market analysis method. You should hire a residential property valuer as they are the experts of the property world and know all ins and outs of the property market.
Here in this post, we are sharing the right ways to perform the comparative market analysis for you –
Inspect and analyse subject property – Analyse the property thoroughly check the property’s size, a number of bathrooms, bedrooms, amenities associated, location, condition of the property, how many times improvements have been made. Check the swimming pool, garden, and garage the value of the property increase if a households these facilities. It is the first yet essential part of the process because if you would not analyse the subject property correctly then finding comparable would become tougher.
Find comparables – Now finding comparables is little bit tough task. As you have to find a similar property in the same location which has been sold recently.
To make it easier for you we have explained the definition of comparable –
Location – Property should be located in the same area means it should be present within 1-3 miles.
Similar – Resembles the subject property most i.e property type & condition, amenities, number of bedrooms, floors and bathrooms, the location should be the same.
Recently sold – As the property market changes frequently property prices to get affected by it. To evaluate the right market value of the property one should choose recently sold property i.e in the last few months.
Choose from them – Find at least three to four comparable or comps and then select two from it. Which matches the most – One with the highest price, second with the lowest price.
Compare to find the value – As you have comparable now compare both the comparable separately with subject property to find the value of the property. The value evaluated after making the comparisons is the actual market value of the property.
This is the way through which property valuers evaluate the property valuer. For the best residential property valuation services, you can contact us. We have expert and qualified residential property valuers in our team.
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