A CMA is a report, prepared by a real estate agent, that determines a house’s market value. The agent compares the house’s attributes to similar properties in the area that have recently sold or are still on the market. The CMA is often used to establish the listing price of a home for sale.
The way a Competitive Market Analysis works is really quite simple. After you contact a real estate agent, the agent will prepare CMA. The agent examines your home’s style, square footage, number of bathrooms, location, etc. Next, the agent looks at recent sales in your area of similar homes. The agent can also look at all of the homes in your neighborhood that have recently sold or that were listed and did not sell. Using these comparisons, the real estate agent determines what the value of your home is.
When preparing a Competitive Market Analysis, the real estate agent needs to be sure to be as current as possible with recent sales in the area. Home prices can appreciate quickly, so depending on the market, a sale from just a year ago can be outdated. If the comparisons are kept within just a few weeks, it gives a more accurate idea of your home’s worth. Also, a Competitive Market Analysis is a free service offered by real estate agents. If you are planning to sell your home, contact several real estate agents and have them all do a Competitive Market Analysis on your home. You can compare the results and choose the real estate agent who believes they can get the most for your home.