What Is A Comparative Market Analysis?
Posted on: 18 May 2017
A top challenge homeowners face when selling their homes is determining how much to ask for them. The sale's price you place on your home can help you sell it or hinder your sale, and this is why a real estate agent is likely to perform a comparative market analysis (CMA) on your home before you choose the price you will ask. Here are three things to know about a CMA.
It offers a way to find out the value of your home
A CMA is something that real estate agents can create, and the whole purpose of a CMA is to find out the value of your home. This report is not the same as an appraisal, but it can be very useful in helping you set an asking price on your home.
How agents create the report
For an agent to create a CMA of your home, he or she must take a good look at recent home sales in your city or area. The agent will look for homes that are similar to yours, and the similarities can include the age of your home, size, and condition. The agent might also look for homes in your neighborhood and for homes that have similar lot sizes. The agent will then compare your home to the homes that are similar to yours and make necessary adjustments to the prices.
For example, if your house is just like another one but has an extra bathroom, the agent may add $3,000 to the price of the similar home to compensate for the extra amenity your home offers.
Appraisers also complete CMAs when performing appraisals, but they also take a lot of other factors into consideration when appraising a home.
You could do one yourself
If you decide to sell your home by owner, you could try conducting a CMA yourself. While this may help you get an idea about the price of homes, it may be difficult to get a great answer to use for your asking price. Real estate agents work in the real estate market every single day, and this gives them the knowledge needed to help people set asking prices and sell homes.
When you get ready to sell your house, your first step should be to talk to an agent like those at Jeff Glover & Associates Realtors. The agent will complete a CMA and will perform a number of other duties before getting your home listed for sale on the real estate market.
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