How Can Having a Market Analysis Boost Your Listing's Value?

People with plans to sell often approach me to ask how they should proceed with pricing their home. My advice? Get a market analysis.

If the term “market analysis” sounds a bit complex, don’t worry. Many people are curious about current real estate conditions but feel daunted or confused by the extensive list of various statistics that contribute to the state of our market overall.

A market analysis doesn’t have to be perplexing, though. Real estate statistics can be easily broken down and understood when you approach them with the right perspective. So allow me to explain some important considerations for you now.

Nearby properties are the first thing that must be taken into account during a market analysis. The homes in your neighborhood, including those that are listed, have recently sold, or are under contract, will give you and your Realtor a gauge of what buyers in your area tend to be willing to pay.

The agent you work with should be paying close attention to any gaps in the market, as well. If there are any major pricing disparities in your neighborhood, it’s critical to make note of these. Not paying attention to the market could cause you to lose out on thousands of dollars.

Also, an experienced professional’s opinion of your home’s value will be much more reliable than any figure you find online. Zillow’s Zestimate, for example, can be especially faulty. This is especially true given that we live in a non-disclosure state, where data relevant to home pricing is not necessarily available for Zillow’s algorithm to take into account.  

When my team and I perform a market analysis for a client, we consider many different aspects of your property. We gather information such as whether your home has been remodeled, how many bedrooms and bathrooms it has, what its curb appeal is like, etc.

With all this in mind, it’s important to realize that a market analysis and an appraisal are not the same thing.

The appraisal process compares your property against others within a certain mile radius in order to verify its value—in particular, an appraiser will stack your home up against the past three to five recently sold listings in that area. Sometimes when gaps exist in the market, as has occasionally been the case recently, you may have to prove to the appraiser that your home is really worth a certain value.

A market analysis, on the other hand, is designed to help sellers get more out of their listing. The process involves strategically examining the market as a means to more successfully navigate the market. It’s our job to help our clients push the envelope on their home value.

If you have any other questions, would like more information, or are curious about how much you could earn for your home, feel free to reach out to me or my team. We look forward to hearing from you soon.