Comparative Market Analysis, CMA’s for short are used by real estate agents to help home buyers and sellers alike. But the biggest question that comes to mind is what are CMA’s and how can you use them to help both buyers and sellers. At Collier & Co Real Estate, we use them for a few items with our clients.
The balance does a great job of explaining the process, but here’s a quick summary. Gathering all the information is much more detailed than just finding the selling prices of similar homes with the same number of bedrooms, bathrooms, square feet, and price per square foot. It’s looking at the listings in detail to determine the features of the homes and similar properties. It could be looking at more expensive or less expensive home features to get an idea of where exactly your true sale price should be when you get ready to sell your house.
By analyzing all of this information and looking at the listing prices in the market now the real estate agents at Collier & Co. will be able to assist in pricing your home.
Comparative market analyses are one of the big advantages for those selling their home with a realtor rather than going down the route of listing your home for sale by owner. For home owners CMA’s are a vast wealth of information that can help you understand more about the real estate market in your area.
By doing extensive research, agents at Collier and Co. can compile an extensive list of comparable homes in your area that are for sale, have recently sold, or have gone unsold. Once this list is compiled they can determine what price to set your home in its current state.
CMA’s are also great sources of information to determine what areas of your home are going to be worth your investment. Collier & Co. can analyze the results from the CMA and notice trends. For example, if all the recently sold houses in the area had a newly remodeled kitchen, but there were a few comparable properties that expired that didn’t, then it might be a good idea to renovate your kitchen before listing to make it more attractive for potential buyers.
Not to be sold short, a CMA can help a homebuyer know if they are getting a good deal or not for a home. Realtors, like Collier & Co., that leverage CMA’s during the buying process can help give you a competitive advantage in today’s hot housing market. Having the ability before going into an open house and knowing if the house is priced well for the market or not can help set the right expectations of the property. Also per Investopedia, it helps really assess the neighborhood.
Overall utilizing a realtor’s vast knowledge to have a comparative market analysis allows you to have a competitive advantage over other buyers and sellers by knowing if you are getting a good deal or not. Buyers and sellers alike love having Collier & Co. provide them the best research to help them sell your home or find your next home.