Comparative Market Analysis.

This comparison will help you decide a fair market value for your home. It uses the most current and reliable information from the MLS (Multiple Listing Service)

The process is a little more complicated than it seems. A Realtor compares homes in the same neighborhood that are similar in size, location (Views, etc.), improvements (updated kitchens, bathrooms, pool, etc).

If there are not enough properties, another similar neighborhood is chosen. I usually take a look at the entire zip code and even neighboring zip codes.

There are three categories of properties considered in determining the value of a home.

• - The “Actives”; these properties are your competition. A potential purchaser will compare your home to homes similar to these when trying to decide which one to buy. Try to be objective and ask yourself, "Which home is the best value?" Is it yours?" If not, these other homes may sell before yours. But don't forget that the "List Prices" of these homes represent what the sellers WANT for their home, not necessarily what they are really going to get if they sell their home.  
• - The “Sold”; this is the reality of the market. These are the most important numbers to use to determine market value. When a buyer decides on a neighborhood, the first numbers that he/she considers are the Sold. So when setting the price of your home, don't simply look at the LIST PRICE of the other comparable homes, look at the SALE PRICE of comparable homes to yours that actually SOLD!
• - The “Expired”; those are the homes that did not sell after the listing terms. These are called expired listings are represent the out of range price. If you price where the other homes expired, your home will remain unsold as well.