The significance of Comparative Marketing Analysis by a Realtor®
Before listing your property, it is highly important to know the fair market value of your property. As a prospective home seller, you must have heard about comparative marketing analysis or CMA. The tool is widely used by homeowners and Realtors® to evaluate the right price of their property.
What does the term “CMA” mean?
Comparative marketing analysis or CMA is an evaluation of similar homes sold recently and active listings in a particular region. This analysis allows you to set the right selling price for your home. Generally, people take help from professional realtors to identify the right value of their property.
Who conducts a CMA?
Although you, as a homeowner, can conduct a CMA for your property, hiring an expert Realtor® will make the process a lot easier because they are aware of the market conditions and have sufficient data about active listings and recently sold homes. When conducting CMA for comparable homes, a Realtor® takes into account both subjective and objective elements, such as:
- Square footage
- Number of floors
- Land area
- Number of bedrooms and bathrooms
- Location, easy access to schools, marketplaces, etc.
- Subjective features including design, style, views, etc.
As part of the CMA process, your Realtor® will also look at properties currently on the market in an Active status. This will give you a picture of your “competition” per se. Properties under contract (pending) can also shed some light on what properties buyers are drawn to enough to purchase.
While properties recently sold are really what matters in helping to determine your market value, active and pending properties can add to the broader picture of your local market activity.
While we live in a DIY world, some things are truly best left to a professional! If you are thinking of selling your home, or just want some insight on your property’s value, call a local real estate professional to help. And best of all, a CMA is typically a free service. What’s better than that?
As always, I would love to hear your additional thoughts, ideas, and comments.