What's Your Home Actually Worth?
What is a CMA and how do you get one?
Better known as a Comparative Market Analysis, a CMA helps determine what your home is worth compared to similar properties in the area that have sold in the last 4-6 months. In short, a CMA will help you understand how your home will fare against the competition. To determine the value of your home, a real estate agent will compare your home to homes with similar square footage, age, amenities, upgrades, condition, and those which are located in the same neighborhood or a similar area.
The more similar these comps, the better the price estimation. Keep in mind, CMA’s are very subjective because it may be hard to account for things such as the home’s curb appeal or what the home’s located near (ex. across from a railroad or power station). Finding a good agent that can help estimate the value of your home, based on these factors, is vital in determining the best list price.
Other factors an agent will look at when compiling a CMA include when a property sold and certain characteristics of the home. For example, when looking at the sold dates of other properties in fast moving markets, an agent will focus on sales from the last 2-3 months vs. longer. The characteristics of your home must closely match the characteristics of the comparable homes. For example, comparable homes should have the same number of bedrooms and bathrooms and a similar sized lot. Keeping comps as similar as possible give you the best footing for generating the best list price.
As you can see, a lot of value is derived from the compilation of a CMA by a real estate expert. The best way to get your home sold is to be in a competitive price range and a CMA will provide that.
Did you know that a Real Estate Agent would provide a CMA at no cost?!
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Real Estate Associate
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