Comparative Market Analysis is the evaluation of data from comparable active listings, recently sold properties and recent listings that failed to sell in the area of your property. Evaluating this data forms a baseline from which a property value range can be established. The market value of your property is determined in a similar way to commodity price – what a buyer is willing to pay for it in today’s market. Despite the price paid originally, or the value of any improvements that may have been made, the value is determined by market forces.

The more competitive and accurate the pricing, the more likely a seller is to maximize the value received when selling. Buyers will have viewed a number of properties before viewing yours and if the pricing does not align with the competition on the market, buyers will be swayed to the appropriately priced homes. Overpricing makes the competition look more desirable and ultimately costs the seller in the long run.