Why sellers should swear by market analysis reports
If you have owned property in a Western market, you are probably familiar with a comparative market analysis (CMA) report which is a custom report real estate agents provide to sellers. Up until recently, a CMA report has not been offered in the UAE. However, now that the solution is available to agents in the market through Property Monitor, just how important is it really to use such reports? Let’s start with the basic question, what exactly is a CMA? A CMA is a comprehensive report put together by a real estate agent for a potential seller and is a vital tool helping you understand more about an individual property and the market it is being sold in. A CMA report is specifically tailored to the subject property and area. The purpose of a CMA is to show the seller statistically how much their property should be listed for on the market and gives insights into the different indicators that contribute to the value of a property. A CMA also provides a sanity check on the information being given to you by your agent and to ensure your expectations for your property sale price are within the realms of the market. So, what is included in a CMA report? Firstly, there usually is a cover letter giving a brief overview to the seller what they are about to read. Next are the subject property details, photos and a brief description highlighting the property’s selling features such as facing the park, upgraded appliances, etc. Following this, is the nitty gritty of the report which shows recently sold properties from the Dubai Land Department and current listed properties on the market that match the seller’s property. Finally, to end the CMA, there are a few statistical reports related to the area and property type of the subject property.
So, why is a CMA report so valuable and essential in today’s market? As we say back home, the proof is in the pudding!
As a seller, you believe your property can fetch top dirham in the market which may or may not be true. You may research real estate portals to see how much similar properties to yours are being listed for, however prices listed on real estate portals are asking, not actual. You may also speak to several real estate agents and each will tell you their own opinion, based on their experiences.
So, who do you believe? How do you know what price you should list your property for? In addition, a seller would want to choose the right price in order to sell quickly rather than having the property sit on the market with the rest of the competition.
A CMA report solves this problem as not only are you shown solid statistics as to why your home should be listed for a certain amount, but you are also seeing the actual transaction prices of current activity, as well as the current market trends in your area.
The real estate market has made great strides to improve the professionalism and credibility of the industry, so providing a CMA to a potential seller should be the norm rather than the exception.
A strategically priced listing is how you will sell your home in this very competitive market.
So, the next time you meet with a real estate professional, make sure they provide a CMA report so you can know exactly how much your property is worth and what it should be listed for, based on current competition and trends. “Without data, you’re just another person with an opinion,” says W. Edwards Deming.
You see statistics as to why your home should be listed for a certain amount and transaction prices of current activity