When we work with sellers to determine a listing price or with buyers to check the value before offers to purchase, we use a market analysis tool what is known as competitive market analysis, or a CMA.
A Competitive 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. A CMA report is created to establish and find a fair price range for your home the report is created for. The price range from the CMA can then be used as a guide to be used for establishing an offer price or a listing price.
Essentially, 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. 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.
A detailed market analysis is key to any real estate decision. So, it is important to take the time to gather the data required to fully understand the subject property’s market area. In the end, the quality of the market analysis can make a difference in accurately determining whether or not a property is a feasible, profitable investment for sellers and if it is the right purchase for buyers.
At Elite Team Realty, we understand that collecting data for an accurate CMA can be time-consuming for buyers and sellers. If you’re looking for a reliable, easy-to-navigate source for information about properties similar to your listing, please use our Market Analysis Tool to receive your free Competitive Market Analysis (CMA). Knowledge is power. Stay up to date on your property’s worth today.
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