What Is A Comparative Market Analysis You Ask?

It is basically a broker's opinion of what the selling price and listing price of your property should be at a specific time.  There is a difference between an appraisal and a comparative market analysis in that it is a broker's opinion as to what the property will realistically sell for compared to other properties that you would compete against in the current market conditions and what has sold in the past.  An appraisal only considers what has sold in the recent past, it does not look at who or what you are competing against when trying to sell.

Nowadays, you will see internet companies that will state that they can give you an automated valuation of your property.  Their systems may work in certain real estate markets in the USA, but they will most certainly not work in the Breckenridge and Summit County market.  A neighborhood in our market could have a 40 year old A Frame cabin next to a $2 million dollar trophy home and the automated valuation factors average valuations in a neighborhood.  The fact that the A frame owner bought the first and best lot in the neighborhood with the best views or that the trophy home owner bought an old A frame home too and knocked it down to build on the great lot is not information that the computer system will register.  Also one condo could be in absolute original and run-down condition and the condo next door has been completely re-modeled and is a corner unit with fabulous mountain views does not register on the internet automated computer system either.  To get a realistic opinion of what you could sell your property for takes a good real estate professional to complete an onsite visit, study the current market and provide that opinion to you.

The comparative market analysis should contain a detailed synopsis of the condition of your property, current Active Listings (what other competitive properties are on the market) Pending Sales (what competitive properties similar to yours are 'under contract,' and due to close shortly) and Existing Sales( what similar condition, location, sized properties have sold for in a specific time period).  It should state to the best of the listing brokers opinion what the List Price (advertised price for sale) your property should be at and what the Sales Price range you should be able to achieve within a reasonable time period.  The Summit County MLS statistics state that even in a great market the average days on market is 180 days.  In a slow market or a market where your property will appeal to a particular kind of buyer it can take up to 2 years to sell!  At the time of writing  (06/10/2006) there were 72 single family homes that sold in 2005, but there were 172 homes for sale.  That means you are competing in that market against 171 other owners to capture one of those 72 buyers.  2005 was the best selling year we have ever had.  Yet you could sell a ski in ski out condo priced between $280,000 to $330,000 in a matter of days.  It depends on the market conditions at the time and your broker will advise you of that.