CandleFocus Glossary Editor
A comparative market analysis (CMA) is an integral tool for buyers, sellers, and real estate agents alike. A CMA looks at a few factors to estimate the value of a home. These include location, size, age, construction, style, and condition of the property; in addition to similar properties that have recently sold in the same area.
For sellers, this kind of analysis provides insight into what a buyer is likely to pay for their property. They can use this information to set the asking price at a realistic figure, reducing the time it will take to close a sale. For buyers, a CMA gives an idea of what a home should be worth, helping them determine a fair purchase price and make competitive offers.
To get a comparative market analysis, sellers and buyers should seek help from a local real estate agent or broker to customize the report. For a fee, they can provide an in-depth report tailored to the specific property, giving reliable estimates of the home’s value. For example, a real estate agent might ask for details like the size and age of the home, the features that make it stand out, and any problems such as pests that need to be addressed.
Alternatively, those who are more tech-savvy can access CMAs from the comfort of their own home. Online real estate databases like Zillow provide listings of similar properties, giving an insight into the current market value. However, these free CMA reports are more basic, with the onus being on the individual to do research and interpret the results accurately.
In most cases, a comparative market analysis is the first step when considering a sale or purchase of property. Although it may be seen as a relatively simple process, without expert help, there is always a risk of getting inaccurate results.
Therefore, it is worth investing in the help of a professional to get the best understanding of the market and the value of a home. A CMA should always be paired with the local real estate agent’s expertise and the knowledge of the seller or buyer to draw the right conclusions.
For sellers, this kind of analysis provides insight into what a buyer is likely to pay for their property. They can use this information to set the asking price at a realistic figure, reducing the time it will take to close a sale. For buyers, a CMA gives an idea of what a home should be worth, helping them determine a fair purchase price and make competitive offers.
To get a comparative market analysis, sellers and buyers should seek help from a local real estate agent or broker to customize the report. For a fee, they can provide an in-depth report tailored to the specific property, giving reliable estimates of the home’s value. For example, a real estate agent might ask for details like the size and age of the home, the features that make it stand out, and any problems such as pests that need to be addressed.
Alternatively, those who are more tech-savvy can access CMAs from the comfort of their own home. Online real estate databases like Zillow provide listings of similar properties, giving an insight into the current market value. However, these free CMA reports are more basic, with the onus being on the individual to do research and interpret the results accurately.
In most cases, a comparative market analysis is the first step when considering a sale or purchase of property. Although it may be seen as a relatively simple process, without expert help, there is always a risk of getting inaccurate results.
Therefore, it is worth investing in the help of a professional to get the best understanding of the market and the value of a home. A CMA should always be paired with the local real estate agent’s expertise and the knowledge of the seller or buyer to draw the right conclusions.