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 you want to buy or sell. Home buyers and home sellers typically have their real estate agent perform a CMA report to establish and find a fair price range for selling a home or buying a home. The report compares the homes location and condition as well as the areas market and the current housing market. The price range from the CMA can then be used as a guide for establishing an asking price or a homes listing price.
Basically, performing a CMA involves finding the homes that are most similar to the home under consideration, and creating an in-depth comparison of its size, age, location, and features of the home. 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
Marcella Lambert and our Team at Sonoran Sky Real Estate offer FREE CMA’s and Full Home Evaluations.
Give us a call to schedule yours today!