CMA, or Comparative Market Analysis, is a term heard often in real estate but for some it's nothing more than industry jargon. Well let us clear that up for you...
One of the benefits of working with a professional Real Estate team (such as The Jay Magnussen RE/MAX Team) when selling your home is our ability to provide you with a ‘Comparative Market Analysis’ (CMA). Completing a CMA allows us to ensure that we are pricing your home for the highest price that the market will bear.
What is a CMA?
The estimated value of your property is appraised by a method known as a Comparative Market Analysis (CMA).
This approach assumes that the market value of the subject property is equal to the price recently paid for similar properties.
A CMA is comprised of two areas with homes comparable to yours. (1) Homes that are currently for sale & (2) Homes that have recently sold. Upon reviewing homes in these categories we will see trends that will help us properly price your home.
(1) Homes that are currently for sale, or pending a sale, which are similar to yours will give us an idea of what buyers will be seeing and comparing your home and its price against.
(2) Homes that have recently sold will give us a good indication of what the market will bear, and allows us to see trends in increasing or decreasing house prices.
With this information we can provide you with the best possible chance of selling your home for the highest price possible, in the shortest time frame possible.
It is also important to note that a buyer and their Realtor have access to the same information and will use this same process to determine the price they are willing to pay for home. Moreover, bank appraisers and financial institutions that will be lending a considerable amount of money against a property will use this process to determine if the lending risk is worthwhile for them; properties that are overpriced most often do not get financing due to the unnecessary risk.
If you would like us to complete a CMA on your home contact us today.