Comparative Market Analysis

What is a Comparative Market Analysis?

A Comparative Market Analysis (CMA) is an evaluation of similar homes in an area to determine the value of a house.

To form a CMA an agent lists characteristics of a house such as:

• type of home

• area and neighborhood

• size or square footage

• age of the home

• number of bedrooms and bathrooms

• lot size

• condition of the home

• location to schools, marketplace, public transportation, etc.

• amenities like a pool, fireplace, etc.

Once the list is complete an agent starts to look for other houses like the house they are completing the CMA for. They look for homes in the same area, usually within 1 to 3 miles. They try and find 3 to 5 houses that are as close a match as possible to compare. They look at homes that have recently sold and homes that are still active.

After they find the best matches they look for how much the home was listed for, did the home sell, how long was the home on the market.

With this information, they get an idea of what the real estate market is like for a house with similar characteristics. It tells the agent if people are buying in this area and at what price range are people buying at. This gives agents and consumers an idea of a specific home’s value.

An agent cannot tell you what price to sell your home at, the choice is yours. They can offer an educated suggestion as to what will help your home sell in the least amount of time with the most profit.

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