The condo market is a battlefield, with everyone striving to deliver the finest services possible. But what can you do to get started in this field? The best method to appraise the condo market, according to SaveMax, is to stay educated at all times. To help you with your assessment, we’ve outlined the fundamentals of the condo market in a few words.
What is Real Estate Market Analysis?
Also known as Comparative Market Analysis (CMA), real estate market analysis is a calculation that uses the value of a home relative to the value of similar properties in the area. Real estate agents or brokers typically use it to help sellers set their prices and attract potential buyers. Aside from being used by real estate agents, individuals can use it by looking through listings on real estate websites. There are various reasons to conduct this sort of research, the most important of which is to obtain knowledge that will allow people to invest and purchase securely.
Tips to Assess The Condo Market
The condo market is a challenging field to get into due to the high level of competition, which is why we’ve put up a list of fundamentals you should know if you want to work in this field.
Analyze the Property
Perform a property study as the first stage in your real estate market analysis. The location and neighborhood, lot size, building duration, and services and amenities should all be considered. Drive around the community to get a sense of the area’s quality. When calculating the worth of a property, keep in mind that the number of bedrooms and bathrooms is crucial.
When it comes to construction time, the date the condo was built, modified, or expanded has an influence on the property’s value. Unless conserving a property’s antiquity or original architecture is regarded as desirable in the neighborhood, newer residences will be valued higher.
Verify the Original Listing Price
If possible, check online for the original listing once you’ve completed the property study. This will provide you with a decent indication of the condo’s general condition. Examine the photographs and descriptions for recent changes, renovations, or prospective issues.
Verify Property Value Estimates
Use online tools like Zillow Zestimates to estimate the market value of the condo. These are market value estimates, and they may not be completely accurate. However, they can provide a good starting point for your analysis.
Make Comparisons
The next stage is to look for similar condos in the area. Start by identifying properties that have been recently sold in the area. Comparable condos should be within 300 square feet of each other and have similar characteristics such as area, lot sizes, ages, and the number of rooms.
You can learn how much similar properties were sold for in the neighborhood by checking online listings. Examine previous listings in your area for properties that have recently sold, as this will provide you with the most accurate valuation as market trends change.
Decide the Market Value
It would be best to have a price range for the property at the end of your study. Consider what you’ve seen and evaluated and how it will affect the value. Finally, figure out where the condo fits within the predetermined price range. The market value of the condo is this amount.
