If you’re thinking of selling or wondering what your home is worth, a real estate agent can provide you with a Comparative Market Analysis (CMA). Not sure if you really need one? Read on to find out more.
Comparative Market Analysis
A CMA is an informative report with data that compares your property to similar properties in your local real estate market. In order to provide you with a Comparative Market Analysis, an agent will need to inspect your property. This doesn’t mean you need to hire professional cleaners as if you’re about to host an open house. You simply need to make sure your home is in good condition so that they can properly assess its condition and worth. It’s also a great time to let your agent know if you’re planning to make any changes before selling. If you don’t have an agent, our agents can provide a free analysis.
After an agent assesses your home, they will do some research to obtain data on similar properties in your area and examine regional market trends. While you can find this data through the Multiple Listing Service, a qualified, local agent will know much more, providing their local market expertise. For example, they may be familiar with the nuances of your area, recent transactions that went well or fell through there, and why. As a result, you will get a much more accurate picture than an online search would provide.
Your agent will be able to tell you how much your property is worth given the current market. Their analysis will account for all of the factors that go into pricing a home such as market conditions, location, and seasonality. They’ll discuss comparable homes or “comps” – properties with similar characteristics such as the same property size, condition, and square footage.
CMA vs. Appraisal
It’s important to note that a CMA is not an appraisal. An appraisal must be done by a licensed appraiser and is required by mortgage lenders. A bank appraiser does not have a vested interest in the sale of the home. They are there to determine your home’s fair market value. Their focus is on ensuring the bank isn’t lending the buyer more money than needed.
How a CMA Could Benefit You
If you really want to know what your home could potentially sell for right now, we highly recommend a Comparative Market Analysis. A CMA can help manage expectations and help you make informed decisions. A CMA can ensure accurate home pricing, keeping it competitive in the current market. You’ll know what homes in your area are selling for, how long they were on the market and the difference between their listing price and their sold price. You’ll be able to examine a low, medium, and high selling price for your property. Also, if you are upgrading or remodeling your home, a CMA could help you see if the changes you’re planning to make will really improve your property, setting it apart from others in your neighborhood.