CMA:
CMA stand for "Comparative Market Analysis." A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.
The real estate agent can provide you with a CMA by inspecting your home. It is not required that he or she inspects your home to provide you with a CMA; however, to be closely accurate of his or her analysis it is preferred that they visit your home. Generally, this inspection won't be overly detailed (she or he is not going to crawl under the house to examine the foundation), nor does the house need to be totally cleaned up and ready for their visit. It should be in such a condition that the agent will be able to make an accurate assessment of its condition and worth. If you plan to make changes before selling, inform the agent at this time.
The next step is for the agent to obtain data on comparable properties. This data is usually available through MLS (Multiple Listing Service), but a qualified agent will also know of properties that are on the market or have sold without being part of the MLS. This will give the agent an idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.
The CMA process takes place before your home is listed for sale. In addition, if you are planning to upgrade or remodel the CMA can be beneficial to see if the intended changes will "over-improve" the property compared to others in the neighborhood. This is a good assessment of what your house could potentially sell for.
CMAs are not only for prospective sellers. Buyers should consider requesting a CMA for properties they are seriously looking at to determine whether the asking price is a true reflection of the current market. In addition, you can use this CMA before the determination of the offering purchase price.
Why Do I Need One?
You are not required to get a CMA; however, if you want to get the best potential price out of your property it is recommended. Not getting a CMA can be a down fall to the sale of your property because you could over priced the house and have it sit on the market forever without getting a serious interest, causing frustration and stressful situations on you and your family especially if you in crunched to sell your house within a certain time frames. This effect could reverse itself and cause you to be even more disappointed or stressed if you under price your house. (It can be very pleasurable to the buyer who just brought your house) What I mean by this is that, if you don't do the research of your neighborhood or a good CMA, you could under priced your house , causing you to lose the potential profit you could have gained and in turn placing money into your buyer's pocket. (If you feel that this is not a problem and it is OK to throw away money. "Call Me" when you are planning to selling your house, I'll be more than happy to receive money from you if you are willing to throw it away.)
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