The Importance of a good CMA

Real Estate Agent with RE/MAX Four Corners

I attended a class at my office yesterday on CMA's. I have been to a couple of different classes on this subject but felt that a reminder would not hurt.

It was taught by a very experienced agent who is also a licensed appraiser.

I was reminded about the importance of the CMA when both listing a property and helping a buyer decide on what price to offer.

Some of the things shared were what is a CMA not. It is not the average price per square foot for the neighborhood. It is not the tax appraisal amount. It is the value that you calculate based on all the plus and minus features of the subject property compared to other similar properties that have sold in the area.

She shared a scenario where a buyer's agent brought a low offer. Using her CMA evidence she was able(with the clients permission) to share why the counter offer was fair and to get the contract agreed.

If you do not know how to do a full CMA I suggest you talk to your broker or mentor and ask for training.

This is a skill that can benefit all your clients, buyers and sellers.



Posted by

Sue Riley Realtor, GRI

Prudential Texas Properties

Serving Collin and Grayson Counties and surrounding area.

Offering great customer service for all of your real estate needs


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Raj Dhaliwal
Century 21 Coastal Realty Ltd. - Abbotsford, BC
You have to sell the price of a home 3 times. 1 to the seller 2 to the buyers agent and 3 to the buyer. A good CMA is great tool to convince all the of em.
Jun 22, 2007 08:46 PM #1
Paul Viau
High Shots Photography - Halifax, NS
High Shots Photography - Real Estate Services

A good CMA is worth alot especially if you can say you were personally in the comparable properties. You need to own the market to do well. There is only so far you can go flying by the seat of your pants.

You will run into extra special problems when trying to appraise a place - and there have been no sales in the last 6 months that compare. You need to weight the replacement cost approach .


Jun 22, 2007 09:24 PM #2
Sue Riley
RE/MAX Four Corners - Van Alstyne, TX

Raj, You are right, that is a good approach

Paul, I agree previewing and touring homes is important to know the market. Sometimes it can be tough if there are no obvious comparables. In this market because prices have been pretty flat for a long time we can easily go back more than 6 months, I realise that is not the same in all areas of the country.

Jun 23, 2007 09:29 AM #3
Elaine Liz-Ramirez
ERA Advantage Realty - Sebring, FL



I am a state-certified general appraiser (FL) and am active real estate agent.  In the present market, it's tough to do a CMA; its tough to do a residential appraisal, because of scarcity of comps.

I had three sales within three months in Feb. all in a tight range with an offer at 10% below the already reasonable price.  Moral to story is buyer went and found something else!

Outside of looking at CLOSED sales.  I can't say how important it is to look at Active and Expireds!  I also look at pendings and contingents!  In this market, there CAN NOT BE TOO MUCH INFORMATION.  We have to be armed and ready!


Jun 23, 2007 09:55 AM #4
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Sue Riley