Comparative Market Analysis

1234 Seller Drive, Anytown

Prepared For:Mr. and Ms. Seller1234 Seller Drive

Anytown, Ontario 1A1 A1A

Researched and Prepared by:Agent Name

Sales Representative

Date Prepared: enter date here

Comparative Market Analysis

Date

Dear Mr. & Ms. Seller:

I know that your home is probably the most valuable possession you have. In fact, many of the people I serve have only the equity in their property to see them through to their retirement years. With this in mind, I want to thank you for trusting me to help you through the process of selling your home.

My first objective is to help you set a listing price that represents your property’s top market value – an objective that requires a thorough understanding of the market. To help you in this regard, I’ve included a detailed market analysis that provides information about similar properties that are currently for sale or recently sold. It has been prepared to ensure that you make the most informed decision you can when pricing your property.

Additionally, this presentation also includes a description of my marketing strategy, an outline of my services to you, as well as great tips for preparing your home to sell.

I welcome the opportunity to serve you, and encourage you to contact me whenever you have questions about the marketing and sales process.

Sincerely,

Agent NameSales RepresentativeSouthway Realty Inc., BrokerageOffice: 905-346-0280Cell: 000-000-0000Email: agent@email.com

Comparative Market Analysis

Marketing Services Overview

• CLICK HERE to modify / add services

• Professional lawn sign

• Multiple Listing Service

• Scheduled Open Houses

• Creative feature sheets

• Internet marketing

• Just Listed cards distributed

• Open House invitations to neighbourhood

• Direct mail and email campaigns

• Notifying all potential buyers in my database

• Salesperson networking

• New Listing announced to over 1000 REALTORS® on “hot sheet”

• Local real estate newspaper ads

Comparative Market Analysis

Market Analysis Explanation

1. Comparable homes that are currently for saleLooking at similar homes that currently offered for sale, we can assess the alternatives that a serious buyer has from which to choose.

2. Comparable homes that recently soldLooking at similar homes that were sold recently, we can see a clear picture of how the market has valued homes that are comparable to yours. Banks and other lending institutions also analyze these sales to determine how much they can lend to qualified buyers.

3. Comparable homes that failed to sellLooking at similar homes that failed to sell, we can avoid pricing at a level that would not attract buyers.

This Comparative Market Analysis will help determine the correct selling price of your home. Ultimately, the correct selling price is the highest possible price the market will bear.

This market analysis is divided into three categories:

The Comparative Market Analysis has been carefully prepared for you, analyzing homes similar to yours. The aim of this market analysis is to achieve the maximum selling price for your home, while being able to sell your home within a relatively short period of time.

Comparative Market Analysis

Internet Marketing

My marketing program is designed to give your property maximum internet exposure. Full marketing details of your property will be placed on these websites:

• www.realtor.ca

• www.mls-niagara.com

• www.HomesAcrossCanada.com

• www.SouthwayRealty.ca

• www.mywebsite.com

• Facebook, Kijiji

90% of Buyers begin their search for a home by

looking on the internet.Source: National Association of Realtors (NAR) 2009 Profile of Home Buyers and

Sellers Report

90% of Buyers begin their search for a home by

looking on the internet.Source: National Association of Realtors (NAR) 2009 Profile of Home Buyers and

Sellers Report

Comparative Market Analysis

How I will help You…

• Help you determine the best asking price

• Offer proven advice on how to prepare your home for showings

• Contact you regularly so you stay fully informed of everything I do to sell your home

• Provide feedback from showings and open houses

• Update you on any market changes that could affect your property’s sale

• Pre-qualify motivated, potential buyers

• Present and discuss each offer with you and provide a “Seller’s Net Sheet”

• Negotiate the highest possible price and terms for you

• Manage all contractual and transaction details and keep you informed

• Assist in providing any required ancillary services (finance advice, legal, moving company, etc.)

In addition to my marketing services, I will:

Comparative Market Analysis

Address List Price Bdrms Baths Sq Ftg

123 East Main St $ 129,000 2 + 1 1/0 975

456 West Main Street $ 127,900 2 + 0 1/0 950

789 North Drive $ 132,900 2 + 1 2/0 1,000

Address Sale Price Bdrms Baths Sq Ftg

123 East Main St $ 129,000 2 + 1 1/0 975

456 West Main Street $ 127,900 2 + 0 1/0 950

789 North Drive $ 132,900 2 + 1 2/0 1,000

Expired Listings Comparable listings that did not sell

Sold Listings Comparable listings that were recently sold

Expired Listings Comparable listings that did not sell

Address List Price Bdrms Baths Sq Ftg

123 East Main St $ 129,000 2 + 1 1/0 975

456 West Main Street $ 127,900 2 + 0 1/0 950

789 North Drive $ 132,900 2 + 1 2/0 1,000

Active Listings Comparable listings that are currently for sale

Summary of Comparable Listings

Comparative Market Analysis

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Comparative Market Analysis

Estimation of Price

The analysis of potential list and sale price of your home has been carefully calculated based on the specific and unique characteristics of your home. This analysis has also been calibrated with homes which are most comparable to yours, including ones that are currently listed for sale and ones that have recently sold. Consideration of current market trends have also been factored in to this analysis of list price.

1234 Seller Drive, Anytown

Estimated List Price Range: $ 129,000 – $ 132,000

Estimated Sale Price Range: $ 125,000 – $ 128,000

Comparative Market Analysis

The Pricing Pyramid

60%

75%

90%

30%

10%

Market Value

+15%

+10%

-10%

-15%

This graph illustrates the importance of pricing correctly. The centre line represents market value. As you move above this market value, you attract a much smaller percentage of prospective buyers, greatly reducing your chances of a sale. Conversely, as you move below market value, you attract a much larger percentage of potential buyers.

Comparative Market Analysis

Market Activity

1 2 3 4 5 6 7 8 9 10 11 12 13

Activity

Weeks on the Market

This chart illustrates the level of excitement and interest in a new listing over time. When a property is first listed, it generates a very high level of interest from prospective buyers which reduces dramatically over time. It is important to be priced correctly from the beginning, during the peak of this activity.

Comparative Market Analysis

Consequences of Overpricing

The strategy of overpricing your property – knowing that you can reduce the price later – might make sense at first glance. However, it seldom works. In fact, Sellers who overprice their properties, even just 10% above market value, often end up getting less than they would if they had priced it properly from the start.

Here is why:

• A high price on your property makes other comparable properties more attractive, so you actually help to sell your competition.

• Fewer buyers will respond to ads, fewer Salespersons will show your property to their buyer clients, and you will get fewer serious offers.

• Inflated prices often lead to mortgage rejections and critical lost time waiting for finance approvals that don’t go through.

• Reducing the price after buyers have begun to perceive your home as a “stale” listing will not generate nearly as much interest as if you had priced it properly from the start.

This is why correctly pricing your property to coincide with its window of maximum market exposure and buyer interest is so important.

Comparative Market Analysis

Seller’s Net Sheet

Sale Price:

Less: real estate fee

Less: HST (13%)

Less: legal fees

Less: Mortgage balance

Less: Mortgage penalty

Net After Expenses

$_________________

$_________________

$_________________

$_________________

$_________________

$_________________

$_________________

Comparative Market Analysis

Preparing Your Home to Sell

When presenting your home to prospective buyers, first impressions are crucial. Buyers begin judging your home the moment they see it, and generally they prefer homes that are well –maintained , clean and clutter free homes - - homes they can picture themselves living in. That is why home improvements, particularly if they address the anticipated needs of buyers, can boost your home’s saleability and sale price.

Here are a few proven, cost-effective tips that will help your home look its best:

• Clean and tidy the entrance, clear stairs and halls, store all excess furniture

• Brighten interiors with fresh, light-toned paint

• Shampoo carpets, clean and wax floors

• Organize countertops – remove appliances if necessary to make them look spacious

• Organize and clean out closets to make them look larger

• Clean and freshen bathrooms, put out clean towels, minimize clutter

• Clean mirrors and windows to make them sparkle

• Organize and clean basement and garage

• Perform necessary minor repairs and touch-ups to walls, windows, fixtures, etc.

• Mow and rake the lawn, trim hedges, weed and edge gardens

• Sweep driveways and sidewalks, pick up any litter

• Repair gutters and eaves, touch up exterior paint

• Plant extra flowers for colour, or place potted plants beside the front door

• In the winter months, keep driveway and walkways clear of ice and snow

• Hang a seasonal or decorative wreath on front door

• Make necessary repairs to fences, exterior light fixtures, screens, shutters

Interior

Exterior