Defining A Comparative Market Analysis
CMA is a real estate acronym that stands for “Comparative Market Analysis”. It’s a report your real estate agent prepares that provides you with the relevant data for comparing your property to other similar properties in the market.
Essentially, a CMA is a method for evaluating your properties worth by comparing it to others, which helps with setting a listing price.
A CMA Is Not An Appraisal
While it might seem like a CMA and an appraisal are quite alike, there are a few differences worth outlining.
The main difference between the two concerns the personnel involved – a CMA is conducted by a real estate agent, whereas an appraisal is completed on behalf of the bank or by a licensed appraiser.
A CMA is used to outline the value of your property, and the value is typically listed as a range. Conversely, appraisals offer a defined value for your property.
Obtaining A Comparative Market Analysis
In order to obtain a CPA, the following steps are required.
First, your real estate agent will come by to inspect your property. Don’t worry, this inspection won’t be super tedious or exhaustive so no need to prepare for an open house! There definitely won’t be any crawling under your home to examine the foundation, so don’t fret.
Regardless, you should ensure your home is in good condition so your agent can make an accurate assessment of its worth. If you have any plans to make changes to your place before selling, this would be the time to inform your agent.
The following step involves your agent obtaining important and relevant information, like collecting data on comparable properties, for example. This data is typically available through MLS, which is a Multiple Listing Service, and when using a qualified agent, they will also include other properties on the market or that have sold without MLS. Gathering this information informs the agent of your properties worth in the current market. You should complete the CMA process prior to your home being listed as it’s a good assessment of what your house could potentially sell for.
Why A Comparative Market Analysis Matters
Considering that acquiring a CMA from your real estate agent is often one of the first steps to take when listing your home, it should come as no surprise that it’s important!
Not only are CMAs useful for prospective sellers, but for buyers as well! A buyer could request a CMA for a property that they are interested in, which would help them understand whether or not the asking price reflects the current market.
For owners that are upgrading or remodeling their space, they could also benefit from a CMA. It can be used to determine if the intended changes will “over-improve” their property compared to others in the neighborhood.
In conclusion, a CPA assists sellers in choosing the best listing price for their property by comparing it to others that are similar in size, features and location.
To obtain your Comparative Market Analysis, connect with the professionals at the Property Exchange Group Inc. today.
Posted by Connie Kosky on