subject: Buyers Agents Can Provide A Comparable Market Analysis To Buyers [print this page] How much does the average home for sale cost? There are many other questions that need to be answered before this question can be answered. What location is the home in? This is an excellent question to start with. A local buyers agent can find the average price of the home of interest for the buyer. Having the average price of homes in the area can be helpful in deciding if the offer being made is reasonable.
According to the US Census Bureau/US Department of Housing and Urban Development in August 2010 the average sales price of a new single family home was $248,800. This is the average for the entire United States, the average may be higher or lower in specific areas. Average regional prices range greatly from one area to the next.
Location is an important detail when the homebuyer wants to know the average prices of homes in the area. Realestateabc's website lists median price ranges for the different regions of the US. The Northeast region had a median price of $263,800, which was above the June median price of $244,300 and 4.8% higher than the previous year. The Midwest and the South both declined in price by about 3% from last year. The West, however, at $244, 800 was up 3.3% from 2009!
If an out-of-state buyer is moving to an area they are not familiar with a local buyers agent can obtain information the buyer may need. It is recommended the buyer get a qualified agent in their area who is familiar with the community, and the agent can get detailed information for the buyer.
A buyers agent can also get a Comparable Market Analysis (CMA) for the home or neighborhood that the buyer is looking into. A Comparable Market Analysis is a report that can be anywhere from 2 to 50 pages. It contains active listings, pending listings, sold listings, cancelled listings, and expired listings which are all used to find homes that are similar to the home of interest and create a report from this information.
In order to find a similar home, square footage, age of construction, amenities, upgrades, condition of the home, and location are all taken into consideration. The CMA is a detailed analysis of the value of the home in the current market. This information can prove vital to a buyer when they are thinking of making an offer. This Comparable Market Analysis is not to be confused with an appraisal. About.com described a Comparable Market Analysis as a report that "helps to yield an accurate and reasonable listing price for a property."
Once a buyer has obtained this information from a local buyers agent, they can decide if the home they are considering purchasing is reasonably priced or not. This CMA also can help the buyer to decide if they should lower their offer or, in some cases, raise it. It can be crucial information to have when the time comes for the buyer to make an offer.
Prices vary from region to region and state to state. It is a good idea for a buyer to use a buyers agent who is familiar with the area they are interested in. A buyer can also get a Comparable Market Analysis from a buyers agent to help them choose their offering price based on similar homes. Buyers agents can bring this important information along with great negotiating skills and many other talents to the table. A buyer should research this crucial tool when buying a home and find a buyers agent in their area.
