A Comparative Market Analysis (CMA) is a crucial step in determining the fair market value of your property, whether you're selling a house or condo in Kelowna. By comparing your property to similar recently sold homes (comps) in your neighbourhood, a CMA provides an estimate of what your home might sell for in the current market.

‍

Why is a CMA Important?

Knowing your home's value is essential for both buyers and sellers. As a seller, a CMA ensures you price your property competitively to attract serious buyers and achieve a faster sale. An overpriced home may sit on the market for longer, attracting lower offers.  For buyers, a CMA helps you make informed offers based on what similar properties are selling for.

‍

How to Conduct a CMA in Kelowna

While a real estate agent can provide the most accurate CMA, you can gather some preliminary information yourself. Here's a step-by-step guide:

Gather Information About Your Property

• Start by collecting details about your property, including square footage, number of bedrooms and bathrooms, lot size, year built, major renovations, and any unique features.
• Look for past property tax records, which can offer a starting point for valuation.

‍

Find Comparable Properties

• Search for recently sold homes in your neighbourhood that are similar to yours in terms of:
  • Square footage (within +/- 10% of yours)
  • Age (within +/- 5 years)
  • Property type (detached house, condo, etc.)
  • Sold within the past 6-12 months
• Utilize online resources like the Canadian Real Estate Association (CREA) website or our website to find listings.

‍

Example

‍

Imagine you live in a detached bungalow in Kelowna's Glenmore neighbourhood with 3 bedrooms, 2 bathrooms, and 1800 sq ft of living space. It was built in 1990 and has a recently renovated kitchen.

Here's how you can narrow down comparable properties:

• Look for detached bungalows sold in Glenmore within the last year.
• Focus on properties between 1620 sq ft and 1980 sq ft.
• Target houses built between 1985 and 1995.
• If you find a property with a similar kitchen renovation, that's a plus!

‍

Analyze Comparable Properties

Once you have a list of comps, compare them to your property, considering features that might affect value:

• Upgrades and renovations (updated kitchen, bathrooms, flooring)
• Lot size and features (pool, landscaping)
• School district and proximity to amenities
• Days on Market (DOM) - how long similar properties took to sell

‍

Estimate Your Home's Value

• Based on your research and comparisons, form an initial estimate of your home's value.
• Remember, this is a starting point. A professional realtor with access to MLS  (Multiple Listing Service) data can provide a more accurate CMA.

‍

Limitations of a DIY CMA

While a DIY CMA can be a helpful starting point, there are limitations:

• Limited Data:  Publicly available data may not be as comprehensive as what a realtor has access to through MLS.
• Market Fluctuations:  The Kelowna real estate market can be dynamic. A realtor can factor in current market trends to refine your CMA.
• Pricing Differences:  Accurately  determining the value difference based on specific features like renovations  requires expertise.

‍

Benefits of a Professional CMA

A realtor can provide a more comprehensive and accurate CMA by leveraging their experience and access to exclusive data:

• Detailed Market Analysis:  A realtor will consider current market trends,  inventory levels, and buyer demand specific to Kelowna.
• MLS Access:  Realtors have access to MLS, a comprehensive database of active and recently sold properties, providing a more precise pool of comparable properties.
• Expertise in Adjustments:  A realtor can  make informed adjustments  based on your property's unique features compared to comps.
• Negotiation Advantage:  A professional CMA strengthens your negotiating position, whether you're buying or selling.

‍

While a DIY CMA can be a starting point, partnering with a qualified Kelowna real estate agent for a professional CMA is highly recommended. Contact us if you would like to have CMA professionally done.