What’s a CMA?
A Comparative Market Analysis (CMA) is an evaluation of similar, recently sold homes (also known as “comps”) that are near a home that you want to buy or sell. Buyers, sellers, or real estate agents will prepare a CMA report to establish, and find a fair price range, for a specific home. This price range can then be used as a guide for establishing an offer price or a listing price.
Basically, preparing a CMA involves finding other homes that are similar to the subject property, 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 the subject property worth? Answering that question involves looking at a fair amount of data on other homes in the current market.
The process for preparing a Comparative Market Analysis includes:
Defining criteria for selecting comparable homes in close range to the subject property and:
- Determining a list of quality comparable homes
- Evaluating the comparable homes within close range to subject property
- Adjusting comparable home values for differences in size, condition, location, amenities, etc…
- Estimating the ideal value of the subject property based off the findings
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