How a Buyer’s Agent Can Help You Analyze a Competitive Market
One of the responsibilities of a buyer’s agent is to help them determine house values. For someone who is buying property, understanding the Sydney housing market can be a daunting task. This is where a buyer’s agent comes in. They can help you make a competitive market analysis. This is a report that can help the buyer negotiate the value of a property.
What is a competitive market analysis?
A competitive market analysis (CMA) provides a detailed analysis of the seller’s property based on physical inspection and public records. Armed with the information, the agent can make the necessary adjustments to comparative house values. The CMA contains a list of recently sold homes in the seller’s neighborhood that have the same house size, lot size, condition, age, and construction. This is difficult in a competitive Sydney housing market.
Aside from previously sold properties, the report will also show an active listing of houses that are currently being sold in the Sydney housing market as well as expired, withdrawn, or cancelled listings. While the information may be helpful in the determination of neighborhood market trends, it is not as important as the data derived from properly adjusted actual home sales.
What is the role of the agent?
After obtaining the report, a buyer’s agent will review the CMA, based from current Sydney property market trends and give their opinion of value. The seller of the property may have information that is not available to the agent. Providing the latter with the information can contribute to a better opinion of value.
The seller of the property will then put on a Buyer’s hat and compare it with the current market. The opinion of the seller does not matter in determining the value of their house because it is the buyer who will determine the worth of the house. The seller should look at the report objectively and ignore the agent who is selling the house at a high price.
It is not recommended to offer a property at a high price just to drop its value. The pricing should be based on current investment property Sydney market value. The seller should put into consideration any expenses that they may accrue while the house is in the market.
The buyer’s agent will provide the seller with expert advice to help them decide on the value of the property. The objective of the agent is for the seller to agree with the buyer on the price.