What Is a Competitive Market Analysis?
Abstract
Table of Contents What Is a Competitive Market Analysis? Is Competitive Market Analysis Synonymous With Appraisal? What Does a Competitive Market Analysis Contain? Who Should Conduct a Competitive Market Analysis? How to Do a Competitive Market Analysis Key Takeaways Have you been in the market searching for the right investment property and feel like you've just found one that matches your search criteria and investment goals? How can you make sure that you're buying the property at the right price before making an offer? Figuring out how much to offer when buying an investment property can be a challenging task, especially for beginner investors. You then get the following data for each home: Property Size: The report contains the square footage for every comparable property. Here's the property data you need to have with you: Property location, including street, neighborhood, city, and county Acreage, if it's privately owned The number of bedrooms and bathrooms Square footage Recent renovations Property age Any outstanding features, such as a swimming pool Property location, including street, neighborhood, city, and county Acreage, if it's privately owned The number of bedrooms and bathrooms Square footage Recent renovations Property age Any outstanding features, such as a swimming pool Some professionals also recommend gathering property tax information. Select Comparable Properties After understanding the local housing market and gathering as much property data as possible, you can now search for real estate comps. Real estate comps allow prospective investors to compare properties in a particular neighborhood or location and come up with an estimate of the subject property's market value. You have conducted a search for property comps and selected the following comparables: Property 1: 2,100 square feet sold for $350,000 Property 2: 2,000 square feet sold for $340,000 Property 3: 2,200 square feet sold for $360,000 Property 4: 2,050 square feet sold for $345,000 Property 1: 2,100 square feet sold for $350,000 Property 2: 2,000 square feet sold for $340,000 Property 3: 2,200 square feet sold for $360,000 Property 4: 2,050 square feet sold for $345,000 Based on these figures, the average price per square foot is $166. Now multiply this figure by 2,000 and you have $332,000. Mashvisor is the best resource for real estate data, property comps, neighborhood and property analyses, and real estate calculations.