Charlotte Real Estate - A Factual Overview in a Time of Uncertainty
CMA Poster Comp
1. Comparative Market Analysis
By: Destinie Marshall
$193,500
$215,000
$290,099$294,970
Median Estimate Home Values
PriceinThousands
Definition:
Ranch Style House: Usually 1 story with a low pitched roof.
Any one story home, usually built in suburbs. Also known as
a rambler.
Data found using:
Multiple Listing Service RASE (MLS)
Realtors Property Resource (RPR)
Zillow.com
Zillow EstimateZillow Estimate
B
A
C
$192,200Zestimates Vs. CMA’s
As the age of technology is constantly expanding, people have
transferred from asking a local real estate agent to do a
comparative analysis on their house to finding a “Zestimate”
online from Zillow.com. Zillow uses a Automated Valuation Model
(AVM) which creates an algorithm utilizing current market data.
Zillow updates their data daily, and allows real estate agents to
enter data into their site and allows their Zestimates to be more
accurate
In many metropolitan areas, a Zestimate is somewhat accurate.
South Dakota’s neighbor, Nebraska has a rating of 4 out of 4 for
their Zestimate accuracy, unlike South Dakota’s dwindling 1 out of
4. South Dakota only has 165,004 houses on Zillow and only
150,400 have estimates; that is only 46.67% of households in
South Dakota. South Dakota is one of the 15 states in the United
States without data from Zillow. On a national level, Zillow has
accurate Zestimates (within 5%) only 34.9% of the time. Their
Zestimates are twice as likely to be too low.
Having Zestimates being too low does not seem to be the
problem with subject properties A and B. Property A’s Zestimate
was 37.12% over market value and property B’s Zestimate was
50% higher than it’s market value. Zillow states that they would
like their customers to supplement their estimates along with a
comparative market analysis or an appraisal.
Comparative Market Analysis (CMA) for Subject C
A real estate agent will locate similar properties in the
area that have sold in the last few years. In this instance I
looked for a ranch style house sold in the last 4 years.
Similarities I looked for; finished square footage, number of
bedrooms, number of bathrooms, style of house, and year
built.
Subject A:
Ranch style, 4 bedrooms, 3 bathrooms, 3 garage spaces,
2,210 finished square feet, built in 2008, and last sold in
2013 for $215,000.
Subject B:
Ranch style, 4 bedrooms, 3 bathrooms, 2 garage spaces,
2,835 finished square feet, built in 2004 and last sold in
2015 for $193,500.
Subject C: Estimation Subject
Ranch style, 2 bedrooms, 2 bathrooms, 3 garage spaces,
1,185 square feet, and built in 2008.
After finding properties to accurately compare a
potential house to an agent would then adjust price to best
market for subject C. Since this ranch style home is much
smaller an agent would adjust accordingly depending on
area. This ranch style home is positively adjusted on year
built and garage stalls. The house is negatively adjusted on
number of rooms, number of bathrooms and finished
square footage. After adjusting accordingly, the estimated
selling price for subject C would be $192,200.
Median Housing prices are based off of data collected monthly. This
chart uses 6 month intervals to describe how median housing
estimates have varied since February 2013. The residual plot of the Zillow estimates shows how off the estimates
are at any price range.
$20,000 - $500,000