A Comparative Market Analysis (referred to as CMA) is a report prepared by a real estate agent that provides data comparing your property to similar properties in the marketplace.
An agent will first inspect your property. The real estate agent should view your home to make an accurate assessment of its condition and worth. Advise the agent if you intend to make changes before selling.
The agent then obtains data on comparable properties. This data is usually acquired through MLS (Multiple Listing Service) but a qualified agent will be aware of other properties on the market that have sold recently and take them into consideration. The agent will then be able to determine the worth of your property in the market.
The CMA process takes place before your home is listed for sale. It is not an appraisal; an appraisal must be performed by a licensed appraiser.
CMA’s are not only for prospective sellers. Buyers should also consider requesting a CMA if they are seriously looking at properties to determine whether the asking price is a true reflection of the current market. A CMA is also a good idea for an owner planning an upgrade or remodel as it will let them know how their property will compare to others in their neighborhood after the changes have been completed.
