The most well-known process of Edmonton home appraisal utilized by Edmonton real estate agents to get the fair market value for a property is the Comparative Market Analysis or CMA.
The reason this is well-known and loved by most Edmonton real estate specialists is because the process is quite simple. You would only need to find out the sales prices of Edmonton homes (similar to what you are selling) that’s been recently sold to determine the present fair market value or selling price. Take a time frame of 3-5 months.
In order for the Comparative Market Analysis to work for you (correctly), you will need to follow the following rules.
- COMPARABLE PROPERTIES. We start with the most obvious. Every single time you will do an Edmonton Comparative Market Analysis, you should strictly “compare” similar properties. Never ever compare a residential property to a commercial property.
- IDENTICAL DETAILS. The same thing applies with the number of bedrooms, location, age, type and style of the Edmonton homes you’re researching on. These specific details should be similar across the properties you are comparing. It’s the only way to get the best result and for the CMA to work for you correctly early on in your search.
For example, this 3 bedrooms, 2 bathrooms Edmonton home for sale located at 10523 134a Av, should not be compared to a 3 beds & 3 baths home at Calmar. It wouldn’t make sense.
- ANALOGOUS NEIGHBORHOOD. A huge variance exists in the prices of Edmonton homes located in an exclusive neighborhood that is near a shopping mall vs that of homes situated in a remote and rundown neighborhood.
Always compare homes in the same neighborhood. You would not achieve the goal of a CMA if you compare a home in North Edmonton to a home in West Edmonton.
- NEWLY SOLD EDMONTON HOMES. As we have mentioned in the introduction, it best to only utilize the sales prices of newly sold homes. A lot of things are factored into a selling price so the more recent an Edmonton home is sold, the better you can estimate the price for your property
The more Edmonton homes you compare side by side, the more satisfactory your result would be.
Subscribe and get the daily news, updates and latest trends in Edmonton real estate.