Feb. 23, 2007 - Receive a CMA When You Buy or Sell
A Comparative Market Analysis, known as a CMA, is a written report that should be prepared by the Real Estate Agent and presented to a seller to help establish a listing price for their home and also prepared by a Buyer’s Agent to help the buyer determine a price to offer for a particular property of interest.
The CMA’s format varies from agent to agent and company to company, but each report should include some basic information. It should compare 2 to 5 or more properties that are currently on the market, sold within the past few years, or are under contract in a reasonable proximity to the home being evaluated. Although no two properties are equal, the comparables used should include listings with approximately the same number of bedrooms and bathrooms, square footage, architectural style, and acreage. It also indicates the number of days on the market, the original list price, and the final selling price.
When you are presented with a properly researched CMA, a seller will have a realistic idea of how much to list their house for, and a buyer will know how much to offer for a home. For the seller, there is a strong possibility that your house will sell quicker if priced within the CMA suggested range. For a buyer, having hard numbers to work with will provide the advantage of knowing if you are paying or offering too much for your dream home.
Whichever side of a real estate transaction you are on, make sure you have the hard numbers presented in a CMA before making your decision.
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