A real estate agent can perform an analysis of the residential market.
A residential market analysis allows you to determine the approximate and current market value of a residential property. A residential market analysis is usually done by a real estate agent, appraiser, home buyer or seller. To conduct a residential market analysis, you must gather information such as the type of home, square footage, listing and sales prices of similar homes on the market, an assessment of the features and amenities of the homes you are comparing, and the neighborhood. or location of the houses.
Survey cards can be sent to customers as part of a relationship marketing strategy.
Most or all of the information you need can be found online or from your real estate agent. Real estate websites, country public records websites, and the Multiple Listing Service (MLS) used by real estate professionals allow you to gather all the information you need to conduct a residential market analysis.
The first thing to do when conducting a residential market analysis is to choose six homes. You must choose three houses that are for sale on the market. The other three properties you choose must be three houses sold in the last three to six months. The six houses you choose must be of the same type of residence. This means that all homes must be single-family homes if this is the analysis you want to perform. If you do a condo market analysis, make sure all six properties are condominiums.
Much of the information you need to conduct an internal market analysis can be found online.
To further narrow down your options, you should look for houses that are close to each other. In rural areas, it may be necessary to include more distant houses simply because houses tend to be farther apart. Ultimately, the square footage and amenities of the properties you are comparing should be the same or similar.
For example, you can’t do a true residential market analysis by comparing a 1,500-square-foot house to a 5,000-square-foot house. Once you have all of this information together, you can use the information gathered to run the calculations to determine the price per square foot and residential home prices for the area.
Take the average price of the houses you are comparing in the area and divide it by the average square footage. This provides the price per square foot that houses are selling for in the area. If the median price of a 1,500-square-foot home is $150,000, divide 150,000 by 1,500, which indicates that homes sell for around $100 per square foot.
You can use the price per square foot to calculate how much to list a house for sale or how much to pay for a house. For example, if you have a 1,562 square foot home, then you would multiply $100 by 1,562 square feet to get a price of approximately $156,200.