Comparative Market Analysis – CMA. What it is and why you might want one!
So, like me, you’ve probably watched a bunch of different shows on HGTV. Whether or not shiplap is your thing, you’ve probably heard at least one person on the show say they “pulled some comps.” You may have figured out they’re referring to comparable properties in the neighborhood. But it isn’t just as simple as “Oh this one sold down the street for $350,000;” there’s some more math that goes into it.
A comparative market analysis (CMA) is done to help you figure out a likely selling price for your house (or a reasonable price to offer if you’re purchasing a house). I start with your house and look at a number of factors – square footage, acreage, number of beds and baths, style, amenities (air conditioning, finished basement, decks, porches, fireplaces, etc). Then, I find 3-4 houses in your neighborhood (or as close as possible) that have sold within the last 180 days, if not sooner. I compare those factors I mentioned earlier (adding or subtracting money as necessary) and end up with a price that I think your house would sell for in today’s market.
How you use the results of a CMA is up to you. You can decide the price is great and you’re ready to list ASAP. Maybe the price is lower than you’d hoped so you’ll wait a month or two, have a new CMA done, and see if the market improves by then. You may just decide that getting a CMA would be interesting and you’re not looking to sell at all right now. Lucky you – it’s a free service I provide, even if you want more than one (such as having one now and then waiting for a busier market time).
CMAs are really helpful tools because they take a lot of the guesswork out of what your house should be listed for. A good Realtor is going to complete a CMA for you before listing your house so he or she chooses a good listing price and not misleading you into thinking you can get substantially more for your house when the comparables don’t support the price. Contact me at any time to get a CMA done on your house – even if you’re just curious. email@example.com