The Nuts and Bolts of the Comparative Market Analysis
The focus of today’s message are comparative market analyses, or what are commonly referred to as CMAs, and how they work.
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What exactly is a CMA?
In essence, it’s a method by which your home’s value is determined. A CMA is comprised of all the key features and details of your home including its style, square footage, age, and other features that will be of interest to the appraiser.
Then, we’ll compare your home to similar properties that are actively on the market as well as to those that have recently sold.
After completing a CMA on your home, your agent will arrive at its most up-to-date, accurate market value, but keep in mind that the CMA you receive today is directly proportional to today’s market. In other words, your home’s value could change in the short span of a month or even a week.
Some sellers would rather not speak with an agent and would instead prefer to conduct their own CMA. Some ways to do that are to pore over public records to see what has sold in your neighborhood, check out your latest property assessment, or refer to online home valuation tools like Zillow.
The CMA you receive today is directly proportionate to today’s market.
Any information you obtain online should be taken with a grain of salt, though. Many online value estimators fall short when it comes to reliability because they often leave out information about your home such as its finished square footage and other key features.
Your home’s condition plays a major part in your CMA, and if it’s worse than comparable properties, it could bring your home’s value down quite a bit. A CMA allows you to see how your property’s features differ from those of similar properties. Maybe your home and a similar home have had full kitchen remodels, but they’ve installed a $40,000 appliance package, whereas you’ve installed a $5,000 appliance package.
You’ll also need to consider the age of any remodeling work. Was it done a month ago or 10 years ago? You may even benefit from calling the previous listing agent to learn everything there is to know about a particular property.
If you have any questions, would like more information, or if there’s a topic you’d like me to cover in a future video, please reach out to me. I look forward to hearing from you!