What Is Your Nest Egg Worth?
Comparative Market Analysis - CMA
How does your potential home measure up?
A Comparative market analysis can be a very important tool that can help you determine the estimated value of the property that you are considering purchasing. Since market value is determined by what a ready, willing and able buyer will pay, a CMA can establish this value by comparing it to similar properties that have sold within the past 6 months.
l. A CMA is a "snapshot" in time. Our real estate market constantly changes, and it is very important to look at the most recent data to get the best possible assessment of value.
2. A CMA is NOT an appraisal. A real estate appraisal is performed by an independent professional appraiser and is a very comprehensive evaluation that involves additional data.
3. As a buyer, a CMA can help you to decide what to offer on a listing you are interested in purchasing.
4. A CMA does involve a certain amount of guesswork. It's easiest to get an accurate price in large neighborhoods where all of the homes are very similar, and more difficult when there is a lot of variation in home size, styles and condition.
Although there are many variables in the information that is included in the CMA, here are some of the basic categories of information that should be included.
Currently available comparable listings- These are the other "active" listings that are on the market in the area that you are looking to purchase your new home.
Pending Sales- These sales represent the most recent sales activity and provide a benchmark for the price that you will want to offer. The actual sales price will not be made public until after the home closes.
Closed Sales (Sold Homes)- In the current market, it is imperative to review the closed sales within the past 6 months. Our market is constantly changing, so reviewing the most recent sales data is very important.
Expired Listings- These are listings that did not sell during the listing period and usually these homes are not priced competitively. If a home doesn't sell during a listing period, it's likely that it was priced to high for the market.
As a Realtor, my job is to help you analyze this information and determine the the best price to offer for your new home.
Call me at 678-557-5521 or email me, firstname.lastname@example.org for more information!
If you are thinking about selling your home, click here for a free market analysis.