What is a (CMA) comparative market analysis?

A Comparative Market Analysis (CMA) is an evaluation of similar, recently sold homes (called comparables or comps) that are near a home or homes that you want to buy or sell.  The CMA report is created to establish a fair price range for the subject property.  Buyers, sellers, or real estate agents perform a CMA report.  The price range from the CMA can then be used as a guide for establishing an offer price or a listing price.

Basically, performing a CMA involves finding the homes that are similar to the home under consideration, and creating an in-depth comparison of its size, age, location, and features of the home.  Ultimately, it all comes down to one question: compared to other, comparable homes in this area, how much is this home worth?  Answering that question involves looking at a fair amount of data on other homes in the current market.

The process for doing a comparative market analysis includes:

  • Defining criteria for selecting comparables in close range to the home.
  • Determine a list of quality comparables.
  • Evaluate the comparables within close range to the home.
  • Adjust comparable values for differences in size, condition, location, amenities, etc.
  • Estimate the ideal value of your target home based off the findings.
  • CMA will be created for this property address
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