In real estate, we use a comparative market analysis, commonly referred to as a CMA report, as a tool to help a home owner more accurately assess his or her home in a particular market. A CMA report is generated by a realtor providing you information by comparing your property with properties similar to yours. This is a service that we offer to our customers for free for them.
In order for your agent to provide an accurate report, it is important that your realtor personally visits your home to get an idea of the state of your property. This collection is not intended to inspect property; your agent will not climb onto your roof, looking for leaks or crawls under your house to check the foundation. This initial review is designed so that the agent can understand how your property will look compared to other neighbors. The condition of your home will have value. If your property is in better condition than others in the area, recently drawn or having more updates, for example, this could add value to your CMA report. Do not forget to tell your agent what improvements, if any, you plan to make before putting your house on the market. They will also consider the location of your property in your area. Do you have a better view than your neighbor? Or do you have a better location next door? It can also add value. These are some of the factors taken into account when combining your CMA and will give you and your agent an idea of how much your property is worth in the current market.
Your agent will then collect data provided by the Multiple Listing Service (MLS) to compare homes similar to yours in your area that have recently been sold. This will give you an idea of what buyers are spending on real estate in your area. Some of the other things that we take into account are the age of the structure, the size of your house, the number of bedrooms and bathrooms, and the size of your lot, if it is a separate family house. Your agent will also consider other properties in your area that are currently listed for sale, the “competition”. You will want to be competitive in your prices in order to sell your home within a reasonable time.
To clarify, the CMA is not intended to be evaluated. CMA is just a guide to help you sell your home for sale. The evaluator is always performed by a licensed appraiser. Evaluation is usually ordered by the buyer-buyer to determine the cost. Is the house worth the price? The lender considers the risk of a loan. As a homeowner, you can also order a quote to put the cost in your home, but a fee will be charged.
The CMA report is also helpful to the buyer. As a buyer, you can ask your real estate agent to run a CMA report before they write a property offer. Your agent should discuss with you the results of the report to help you talk about the fair price of real estate purchase. The final decision on how much to offer for real estate is always the buyer.
