What is a Comparative Market Analysis?
A very good definition of a CMA is given by Homegain.com: The best method available to home sellers to learn their home’s current value so they can select the best sale price is a CMA, or Comparative Market Analysis. CMA is the term real estate agents use when they conduct an in-depth analysis of a home’s worth in today’s market.
What’s in a Comparative Market Analysis?
A comparative market analysis is a report, usually compiled by a real estate professional right before your house goes on the market. A CMA gives you information (sometimes referred to as “comps”) about houses similar to yours (in size, amenities, and location) that are either on the market, have sold, or were listed but expired (usually, because they were priced too high and no one bought) within a reasonably recent time period. It’s ideal to have your CMA look back no more than three months when the market is in transition, and no more than six months in a more stable market.
A good CMA can tell you:
- what homes like yours are actually selling for
- how long it’s taking for them to sell, and
- what their sale prices were in relation to their list prices (the difference between what people actually got for their house and what they asked for).
It’s especially important to pay attention to the prices of pending, rather than closed, sales, for the basic reason that they’re the most recent.
And if you have the opportunity (on your own or with your real estate agent), visit some comparables yourself to see how houses on the market compare to yours in terms of price and other features.
View full article by Marcia Stewart
Please note: A CMA is not a property appraisal. Only a State Certified Residential Real Estate Appraiser can perform an appraisal of your home.