Real Estate Pricing Accuracy and $7B Savings: Comparative Market Analysis

January 24, 2019

Identifying Over $7 Million Savings with Comparative Market Analysis

About the Client

The client is one of the renowned real estate agent in the US. 

Business Challenge

As the US real estate market continues to mature, players are poised to witness a major transformation that deals with a tight labor force, implementation of new technologies, and the adoption of practices to attract new capital to the asset class. To be competitive in this dynamic world, the real estate agents must determine the value of the investment property by relating it to other recently sold investment properties in the nearby location. Moreover, as the real estate markets change rapidly, it’s always crucial to have a current comparative market analysis report to formulate a smart approach.

To set the accurate price for a property, it’s vital to be familiar with a neighborhood and knowledgeable about the historical and current sale and rental value of real estate. Do you agree? If yes, request a FREE brochure to more about comparative market analysis.

Top Challenges Faced by Real Estate Companies

Problem Statement 1

The client noted that inaccurate pricing strategies for their properties resulted in sales losses for the company. With Infiniti’s comparative market analysis, the client wanted to determine the right market price for their properties.

Problem Statement 2

The client also faced difficulties in making key decisions for their company due to the lack of market knowledge. Hence, the client approached Infiniti Research to leverage its comparative market analysis expertise to analyze listing price and main selling features of their competitors.

Problem Statement 3

As purchasing properties in the areas that were declining would eventually result in financial losses, the client wanted to get detailed insights into the profitable areas for their business.

Problem Statement 4

With the aid of comparative market analysis, the client wanted to analyze the main selling features of the properties that have been sold in their area. With accurate data in hand, they wanted to ensure that necessary adjustments are made prior to listing their property to ensure a quick sale.

According to the market research experts at Infiniti Research,” Real estate agents must never purchase a property that would not earn target rate of return over their anticipated holding period. Furthermore, inaccurate real estate market analysis adds unnecessary risk into feasibility analysis.”

Gain detailed insights into recent sales and active listings that are similar to your property within your geographic region. Request a FREE proposal to leverage a comparative market analysis.

Solutions Delivered

The market experts at Infiniti performed a comparative market analysis to help the client sell their properties profitably and tackle the industry challenges.

Phase 1: Analyzing property

The initial phase of the real estate market analysis followed analyzing the client’s properties. The features including, property size, number of rooms and bathrooms, the floors, the age of the property, and all other property attractions were taken into consideration.

Phase 2: Analyzing Competitors

The second phase of real estate market analysis revolved around gathering the list of properties; recently sold or to be sold, that shared the same characteristics as the client’s property. Additionally, thorough research was carried out to analyze the smart selling points of the competitors.

Phase 3: Comparable market analysis

The final phase of comparative market analysis revolved around carrying out a comparable market analysis. Our experts prepared a robust comparative market analysis report that contained the listing price, main selling features, and accurate market prices for their properties.

With Infiniti’s comparative market analysis, the client was able to accurately price their properties according to the current market value. Comparative market analysis helped them sell their properties in a small period, which subsequently helped the company to improve their profit margins. By accumulating information about similar properties in their area, the client was able to instantly gain a competitive advantage. This subsequently guided them towards making the best business decisions.

Additionally, adequate knowledge about the areas that were declining helped the client to direct their business to the most profitable areas. Altogether, the comparative market analysis helped the client to save $7 million in a year and also helped them take their business to a new realm of success.

Want to evaluate how your properties will fare against the competition? If yes, Request for a FREE proposal below to leverage our competitive market analysis.

How to do a Comparative Market Analysis?

A comparative market analysis helps a real estate agent to figure out the actual market value of real estate properties. The comparative market analysis is an evaluation of the value of real estate using indicators reaped from sales of comparable properties. Well, let’s evaluate how to do a comparative market analysis:

Collecting Data: The initial step of a comparative market analysis is data collection on all the listed properties. The data must include, property age, amenities, location, property size and more. Once you have gathered all of this data, set up a framework to analyze them.

Calculate price per square foot: Calculate the property price per square foot and determine an optimum price for the property.

Property Analysis: Analyze the property amenities and location reviews from the data collected and make similar upward and downward adjustments in the property prices.

Wondering how to do a comparative market analysis? Infiniti is here to help. Get in touch today to leverage our comparative market analysis.

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