The first step to selling your home is determining how much it is worth and what people are willing to pay. Although there are many online calculators, the best way to accurately assess your home’s value is to work with an expert – a real estate agent who can develop a customized CMA.
What is a CMA? A comparable market analysis (CMA) is a report that real estate professionals generate to determine the value of a home by finding similar properties using an industry resource called the Multiple Listing Service or an MLS.
A CMA compares your home to other homes similar in build, age, features, upgrades, square footage, lot size, etc. The report will show how your house stacks up against other homes in your neighborhood or community that are currently on the market or have recently sold.
Determine the value of your home
In the age of Kelley Blue Book, eBay, Facebook Marketplace, and many other do-it-yourself selling websites, you may have gotten used to and even comfortable selling belongings on your own. Due to vast digital and social advancements, you may think pricing a home would be just as simple. With various online estimation tools available, it can’t be too hard to find the value of your home, right? Well, yes and no! Of course, you can and should do your research when looking to buy or sell your house, but determining the value of your home is not as simple as it sounds. Many sellers struggle with remaining unbiased when evaluating their homes which can lead to future challenges.
Benefits of a CMA
No two houses are alike. That’s why pricing a home can be so challenging. Working with a real estate agent who can create a CMA increases the likelihood of selling your house faster and more efficiently. By comparing other homes, you can identify a price range that best fits your home. You and your agent can then determine if your home belongs on the higher end of that price range or the lower end.
This is often where sellers go astray. If priced too aggressively, a house can sit longer on the market and many potential buyers who would have seen your new listing will not, especially if they have saved searches created only to see houses in their preferred price range.
Another issue sellers face when pricing a home aggressively is having to reduce the listing price. Many buyers may write off your property once they see multiple price reductions and assume something is wrong with the home. Others may have seen your property floating around the MLS for some time now and are more interested in the new listings on the MLS. Now you are competing with people thinking something is wrong with your home and new listings.
CMA Misconceptions
- A CMA is not the same as a home appraisal and cannot take the place of one. A licensed appraiser must conduct a home appraisal.
- If your real estate agent provides you with a CMA, they are not urging you to move. Your agent may send you a CMA report because they want you to know that houses like yours are in demand! Receiving a CMA from your agent is a way to understand how your home is performing against other homes currently on the market, even if you don’t have plans to sell just yet. However, if they know you are on the fence between staying or selling, they may suggest a CMA to give you a little nudge.
- An online valuation tool is an excellent resource in addition to a CMA, but it should not replace a more accurate, in-depth CMA generated by a real estate expert.
How to request a CMA
If you are currently working with a real estate agent or have worked with one in the past, you can reach out to them and request a CMA. If you are not currently working with a real estate agent, Blessings Realty is ready and willing to provide a CMA for you! Get in touch today!
Article source https://cohomeblog.recolorado.com/what-is-a-cma/.
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