It may not come as a surprise to hear that the real estate market is one of the largest in the United States. After all, everyone needs somewhere to live, and this includes both owned property and rentals. Some Americans or their families rent property if they can’t yet afford a house or have a lifestyle that contradicts “putting down root.” Otherwise, Americans are owning their property, and they often either put their property up for sale or browse the real estate market for a house to buy. Buying or selling one’s home is complex and requires paperwork, but fortunately, realtors and real estate agents can lend their expertise to clients, as can real estate lawyers. Comparative Market analysis, or CMA, is quite helpful for this, and CMA presentations and CMA reports will allow a homeowner to get a better deal when they sell their house. Realtor CMA services can go a long way, and these realtor CMA services might be found online or through a reference. Realtor CMA software can make for a better deal when selling one’s house.
The Market Today
What is the current state of the American real estate market? This market suffered in the 2008 recession, but it has largely recovered since then. As of 2008, the median home price stood at $177,000 but it rose to $207,000 by 2017, which represents a 16.9% increase. And now, over the next 10 years, estimates say that 80% of all residential growth will take place in suburban communities. What is more, the value of American housing stock rose 6.5%, or by $2 trillion, to reach a value of $31.8 trillion today. And in 2016, around 19% of all homes were purchased for investment purposes, as some Americans take a great interest in that.
Who is buying and selling these homes? Baby Boomers, adults born 1945-1962 or so, are the most robust home buyers and sellers alike, as they have had a lot of time to save up money for projects like these. They are also the biggest market for home remodeling, a related industry, and they outspend younger home buyers three to one on this work. Older Americans don’t move as often as younger ones do, so they are more interested in investing in their current properties. Still, Millennial home buyers, those born 1982-1995, are a small but growing share of the housing market and are now old enough to start making such purchases. It is possible that 10 years in the future, they may rival the Gen Xers (born 1963-1981) and their Baby Boomer parents on the real estate market for home purchases and remodeling. Much later, such as 15-20 years in the future, Generation Z adults (born 1996-2010) may do much the same. But whether a Millennial or their Boomer parents, a person on the real estate market may want professional help to get the best possible deal. Realtor CMA work can do this to great effect.
What Realtor CMA Does
A realtor is an agent or company that helps a home buyer or seller with their property management, including comparative market analysis. When the client homeowner is selling their property, they don’t want to charge too high a price for its value, or they may not find any interested buyers. Conversely, if they ask too low a price, they will get some buyers but will have a bad deal on their hands and suffer a loss. To balance this, realtor CMA software will compare the client’s property with similar properties in the area (the radius may vary based on preference). This software may compare the client’s property to those that are currently on the market, those that have already sold, or both, if so desired. This makes for an accurate “average” or typical selling price or value for such properties, and the homeowner may act accordingly.
Landscaping, or yard enhancement, allows the homeowner to ask for a higher price on their property, and attractive lawns may draw in more buyers who find it appealing. Something similar can be done for interior remodeling, such as for the kitchen or master bathroom, meaning that the money spent on remodeling work can yield some generous returns when the property is sold. This makes remodeling and landscaping financially smart.