What is (CMA) comparative market analysis?
If you are looking to invest in real estate, then it is time you learn what comparative market analysis means and how important it is to you. CMA (comparative market analysis) is one way to gauge the value of the house you are about to sell from the recently sold homes nearby. CMA is used by sellers and real estate agents to figure out their home pricing report before putting a certain house for sale on the market listings.
If your home has been on the market for some time, then you have probably received emails or direct mails from local real estate brokers. These pitches basically tell you how much your home is worth along with free CMA reports to estimate the prospective value of your home. Depending on the local realtor, the report may be comprehensively detailed or just a couple of pages. However once you see the CMA report you will have a wider idea of the ideal price of your home. This allows you to set a price that will increase its selling potential.
How do you conduct a comparative market analysis?
There is no hard and fast rule when doing a comparative market analysis. As you start comparing prices, you may look at ten dozen sales or limit your view to a couple of houses in the same block. The CMA may also include studying subjective features such as square footages and key amenities.
The following are things that you need to consider when doing comparative market analysis.
Identify the list of recently sold homes
Evaluate and compare them to your prospective houses
Adjust comparable values according to size, conditions, features, and location
Gauge the ideal value of your target house based on your findings
You’re just 60 seconds away from achieving what you originally hoped to get from your property.