What is a (CMA) Comparative Market Analysis?
A Comparative Market Analysis (CMA) is an evaluation of similar, recently sold homes (called comparables or comps) that are near a home or homes that you want to buy or sell. Buyers, sellers, or real estate agents perform a CMA report to establish and find a fair price range for the home the report is created for. The price range from the CMA can then be used as a guide to be used for establishing an offer price or a listing price.
Basically, performing a CMA involves finding the homes that are similar to the home under consideration, and creating an in-depth comparison of its size, age, location, and features of the home. It all comes down to one question: compared to other, comparable homes in this area, how much is this home worth? Answering that question involves looking at a fair amount of data on other homes in the current market.
The process for doing a comparative market analysis includes:
Defining criteria for selecting comparables in close range to the home
- Determine a list of quality comparables
- Evaluate the comparables within close range to the home
- Adjust comparable values for differences in size, condition, location, amenities, etc
- Estimate the ideal value of your target home based off the findings
What’s the difference between list price and sale price?
The ‘list price’ is what the home is actually listed for. Buyers are able to offer more or less than this amount. Sometimes there is a negotiation between the buyer and seller, but ultimately, when they agree on a price and the home is sold, that amount is the ‘sold price.’ Depending on the market conditions, the list price and sales price may be quite different. In a competitive market, many buyers are offering more than the list price in order to stand out.
Most home value algorithms, are sometimes good for a quick estimate, however they overlook the unique features of your property. No online tool can match the insights gained from an in-person evaluation of your home and its community. We can provide a far more accurate prediction of your home's current value compared to automated online estimates.
To get a closer estimate of your home's true value in today’s market, contact us for your free, no-obligation home evaluation!