Is a Comparative Market Analysis still used in today’s real estate market?  The answer is yes, but it is a different animal.  In a normal market the values of recent sold homes are taken and evaluated with the subject property.  Factors included are square footage, number of rooms and any amenities that the home has that the others don’t.  In markets past the price of the sold homes would be the price that your home would probably be set. 

In today’s market the rules have changed somewhat.  With the rise in short sale listings, the market values have come down in price simply because of the many vacant and bank owned homes.  These new values are placed because this is all that the market will pay.  Companies now are hired by the mortgage lenders to give current “Broker Price Opinions” or BPO’s.  These are essentially a home analysis done on a weekly basis to determine the minute to minute prices in the areas that are being evaluated. 

How you determine what your home is worth is to ask a Realtor® to give you the latest sales data for the area.  Keep in mind that the price you list your home may change and should be a constant update process.  In times past you could sell your home for a nice profit and benefit from the equity.  Now lenders are not lending loans for anything above the current BPO’s.  As we near the bottom of the decline, the market values will probably hover at current values for at least the next year.  If you would like a market analysis for your home, click here and email me your address and a contact phone number.  I will get you the best current market numbers available. 

Rick Snyder, Realtor for Boise Real Estate