Comparable Market Analysis (CMA)
Setting the right price from the start is among the most important steps toward successfully selling your home. This requires taking a close look at what other homes are selling for to judge the relative value of your home. One of the key ways to compare your home to others on the market is to look at a comparable market analysis, or “CMA.”
What’s in a Comparable Market Analysis?
A comparable market analysis is a report, usually compiled by a real estate professional right before your home goes on the market. A CMA gives you information (sometimes referred to as “comps”) about homes similar to yours (in size, amenities, and location) that are currently on the market, or that have recently sold. It’s important that your CMA look back no more than three months when the market is in transition, and no more than six months in a more stable market.
A good CMA can tell you:
It’s especially important to pay attention to the homes currently for sale, and the pending sales. These homes are not only the most recent, they’re also your competition
Professional Real Estate Appraisals
When you bought your home, the bank probably required you to get it “appraised”—that is, have a professional view it and put a dollar figure on its market value. But you can pay a few hundred dollars to get an appraisal too. Usually, the appraiser will give you a report that arrives at the value of your property by comparing it to others that have recently sold. But keep in mind—in most cases, the appraiser won’t have actually have seen the comparable properties.
Although it’s the least scientific measurement, open houses in your neighborhood will also be informative. Viewing other homes will help you get a real sense of what drives prices up and down. Looking at open houses can be especially useful if you live in a development and there are similar homes for sale. Think like a buyer when comparing homes that are similar to yours.
Putting It All Together
With the list of comparable properties, the opinions of professional agents, a possible appraisal report & your own hard look at your house and others, you’ll probably arrive at a likely value—or at least a range, most likely around $10,000 to $20,000.
Click on the tab below to use the Real·Pro Automated Valuation Model (AVM) tool to obtain an estimated value of your current home.
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