A Comparative Market Analysis

Salt Lake Comparative Market Analysis

How is the value of a home determined? This is great question that has more than one answer.

Home Values from a Buyer's Point of View

From the buyer's perspective it is supply and demand. They comparison shop, they will look at all the homes in their area and price. They will compare the price along with the features and benefits that are associated with the property. Things like area, square footage, number of bathrooms, garage, condition... As you can see the example in the table below, it is that simple. The property that offers the most features and benefits for the best price is the one that has the most value to a buyer. Table 1.1

Item	Prop # 1	Prop # 2	Prop # 3
List Price	$200,000	$200,000	$190,000
Area	Similar	Similar	Similar
Sq Ft	2,350	2,300	2,450
Bedrooms	3	3	4
Baths	2	2	2.5
Gar	2	2	2
Condition	Fair	Fair	Remodeled Kitchen

Things Don't Have an Affect on Value

What you paid What you owe What you want What you need

Home Values from the Bank's Point of View

Banks use appraisers to determine value. Appraisers use a comparative method, but they go by past history instead of the active listings. Continued 0 comments on ActiveRain...

Author

Rob Aubrey Real Estate Group
Keller Williams Utah Realtors
Cottonwood Heights, UT

Cell Phone: (801) 694-4762
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