If you have purchased any type of real estate in the past – regardless of whether it was investment-related or for the purpose of your primary residence – it is likely that you took into consideration the value of comparable sales (comps) before you made an offer.
Doing a Comparative Market Analysis (CMA) – which is oftentimes simply referred to as “running comps” – can help you in determining what other homes in the area have sold for recently.
While a CMA can typically vary (sometimes quite substantially, from a short list of comparable home sales to a 50+ page comprehensive guide), most comparative market analysis reports will consist of the following information:
- Active Property Listings – An active listing is a property that is currently for sale. Here, while you may not need to stick closely to the list prices, this information is beneficial in that it shows you what the “competition” is listed for.
- Pending Property Listings – A pending property listing is a listing that is now under contract and pending a sale. This information can be extremely useful in determining the direction of the market – although it is important to keep in mind that a pending listing is still not considered a closed sale.
- Sold Property Listings – Sold property listings are properties that have actually sold within the last six months. These figures are actual comparable sales (or “comps”), and they should be considered when putting together an offer.
- Off-Market Listings – An off-market listing is one that has been cancelled or withdrawn. There can be any number of reasons for this, such as seller’s remorse or nobody making an offer on the property during the time that it was listed for sale.
Once you have made a property purchase, it is essential that you know how much time and money the maintenance and management of the unit will take. Working in conjunction with a property management team can help you to alleviate the time it takes to keep your investment running smoothly.
For more details on hiring an experienced property manager in the Orlando and / or the surrounding Central Florida area, contact us today.