What is a CMA?
If you're in the market to buy or sell a home you've probaly heard the term "CMA" thrown around once or twice. What is a CMA? CMA stands for "comparative market analysis". It is frequently used by real esate professionals when trying to determine how much a home should sell for. On the flip side; it is also used to determine how much a buyer should pay for a house that they're interested in. An analysis is configured using current real estate data from transactions in the immediate area of a home.
In real estate; the true market value of a home is whatever a buyer is willing to pay for it. Records are kept of all homes that were sold using a real estate agent, and fair market value is configured based on recently closed sales and current pending sales. Homes currently for sale that is like or similar to the sellers house is also taken into consideration because these are the sellers direct competition.
Some sellers may argue that they want to price based on an appraisal; however; using a CMA is a more "targeted" approach since it relys on real data, and not assumed value. Don't get me wrong; I'm not saying don't get an appraisal if that's what you're comfortable doing. I'm just stating that having an appraisal done solely for the purpose of pricing your home for sale is not necessary in most cases.
Sometimes the appraiser is not familiar with the neighborhood so the risk of inaccuracies is greater. Based on the sellers' expectations; the results a CMA can be a hard pill to swallow. Overall; a CMA is invaluable when deciding to sell a home, and if executed correctly will lead to a successful sale everytime.
A few CMA FACTS
Based on real current data
You don't have to pay a Realtor for a CMA
Determines the price a buyer is willing to pay for a house today
Data is gathered from homes that are just like yours (the seller)
CMAs are accurate & compares apples with apples (including year built)
With custom homes monetary adjustments are made to accommodate differences
Lenders rely on this same data from real estate professionals when determining how to price bank owned homes
Thinking about selling your Atlanta Georgia home?
Contact me for a complimentary market value analysis (CMA)-