What is a CMA?When buying or selling a house a CMA is essential to establish fair market value.
How a CMA Works in Real Estate
How do buyers and sellers achieve these goals? The chief way buyers and sellers can be certain about real estate values is by either having a real estate appraisal completed or by asking a real estate agent for a CMA. If you have never bought and sold before, you might not be clear on a CMA.
In fact, those not involved in the real estate world have asked what is a comparative market analysis? Real Estate agents often call an analysis of value a CMA which is short for comparative market analysis.
A CMA is a tool used to value real estate by considering multiple factors. A report on the market value of a property can be created by real estate professionals who study similar properties to the one under consideration.
Real estate agents use comparable market analysis to determine a price range for both buyers and sellers.
A CMA is a less formal type of appraisal that can be used to establish fair market value. While a real estate appraiser can do an appraisal, only a licensed appraiser can certify the accuracy of the appraisal.
To compile a comparative market analysis report, you will need to gather data first. A real estate agent will use recent sales, pending sales, contingent sales, and current homes for sale to determine the right price for a property.
Comparative market analyses, or CMAs, include looking at important characteristics of properties for sale. These can include the property's listing status and other vital factors.
Some important factors to consider when purchasing a home are the location, square footage of the home, and number of bedrooms and bathrooms.
The size of the lot, how old the house is, and the condition are all important factors when trying to determine a home’s value. The school district that it is located in can also affect this value.
The local and national market conditions will affect the home prices too. All of these things need to be taken into consideration when calculating an accurate CMA.
Buyers and sellers both rely on the accuracy of a CMA to make one of the most essential financial decisions of their lives. It is vital to get it right as a real estate agent. Unfortunately, many agents don't. Pricing a home is a challenging thing to do, especially when you are new to the business.
Sometimes it takes years to master the art of property valuations. It's no wonder there are so many properties who have price reductions. Sellers often rely on an agents opinion which doesn't hold up.
If you want to understand more about the process of creating a comparative market analysis take a look at the resource from Maximum Real Estate Exposure. It has a wealth of information on CMA's.