CMA is real estate shorthand for "Comparative
Market Analysis." A CMA is a report prepared by a professional
real estate agent by comparing collected data on your property
to similar properties in the marketplace.
The first thing an agent will need to do to provide you with
a CMA is to inspect your property. Generally, this inspection
won't be overly detailed (s/he isn't going to crawl under
the house to examine the foundation), nor does the house
need to be totally cleaned up and ready for an open house.
It should be in such a condition that the agent will be able
to make an accurate assessment of its condition and worth.
If you plan to make changes before selling, inform the agent
at this time.
The next step is for the agent to obtain data on comparable
properties. This data is usually available through MLS (Multiple
Listing Service), but a qualified agent will also know of
properties that are on the market or have sold without being
part of the MLS. This will give the agent an idea how much
your property is worth in the current market. Please note
that the CMA is not an appraisal. A licensed appraiser must
perform an appraisal.
The CMA process takes place before your home is listed for
sale. This is a good assessment of what price your house
should bring in the given area under current conditions.
CMAs are not only for prospective sellers. Buyers should
consider requesting a CMA for properties they're seriously
considering to determine whether the asking price is a true
reflection of the current market. Owners who are upgrading
or remodeling can benefit from a CMA when it's used to see
if the intended changes will "over-improve" their
property compared to others in the neighborhood.
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