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Comparative Market Analysis (CMA)
CMA is
an assessment of a property market value, usually done to establish a
reasonable listing price when a property is placed for sale. When
preparing a CMA, a real estate agent compares listing and sales data
for similar properties in the area. Specifically, this includes
information about:
- Properties that have sold and closed and resulted in ownership transfer
- Active listings – properties currently for sale
- Pending sales – listings that have sold but not yet closed
- Expired listings – properties that did not sell during the listing period
The
analysis is normally done by a real estate agent who has easy access to
area sales records.
Are you thinking about selling your home?
If
you are a seller you do not want to sell for anything less than fair market
value. On the other hand, by setting a selling price higher than what
you should could be a mistake that results in a home that doesn't sell. Before
putting your home on the market and setting a price it is important to
first have an estimate of your house's value. This can be easily
accomplished by having an experienced, local real estate agent provide
you with a Comparative Market Analysis. Providing
a Comparative Market Analysis, or CMA, is a valuable service for home
sellers but can also be beneficial to home buyers. A comparative market analysis, or CMA, is an evaluation of a home's value based on available local market data including:
- How much homes similar to yours have sold for recently.
- How long these homes were on the market before they sold.
- How fast you can expect to sell your home at your desired asking price.
- What your "competition" would be should you decide to put your home on the market right away.
Whether you are a buyer or seller, keep in mind that a CMA is not an appraisal.
A real estate appraisal is a very comprehensive evaluation performed by
an independent professional appraiser that involves additional data and
process. Also understand that the agent’s experience in the business
and familiarity with the local area can affect the accuracy of the
CMA. Know, however, that a CMA prepared by an experienced agent with
good knowledge of the local market is usually right in line with the
appraised value. A CMA can therefore be a very useful tool no matter
which party you are in the real estate transaction.
The
real estate agent that will provide your CMA does this with the
anticipation they will be given the opportunity to list and sell your
home if and when you decide to place it on the market. In addition,
your CMA will be provided to you at no cost and without obligation.
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