What's My Home Worth? - Comparative Market Analysis

By
Real Estate Agent with Charles Rutenberg Realty Inc. 516-575-7500 NRDS ID#641625055

Comparative Market Analysis (CMA) - The Definition

 

The process of selling your house begins with a Market Analysis carefully prepared by a local agent. Take your time looking over all the information and understanding where your home best fits in. Some of the properties included may be a little smaller or larger than yours; some may be more or less expensive. Pay attention to lot size, garage size, bedrooms, baths, basement etc. as well as the number of days the listing was on the market (DOM). Well done, it is a very accurate representation of your home's current worth but, in a fluid market, even six months can make a noticeable difference in price and render the market analysis moot.

While the definition for terms like active, solds etc. may appear to be self-explanatory, below, I explain in detail the information you can glean from knowing what the labels mean.

 

 

Generally speaking, a Comparative Market Analysis (CMA) report will contain the following data:

Active listings

Under Contracts

Sold listings

Expired/Withdrawn/Canceled 

 

Active Listings:  True to their name, these are the listings that are currently available in the marketplace. Being aware of them is useful in terms of knowing your competition but, they don't give you very much information in terms of selling price. A homeowner is free to put any price tag on his home but there's no guarantee that he will get it. If anything, when your house is priced too high, it will help sell your neighbor's house as the consumer will notice what a great deal he's getting when looking at the competition.

 

Under Contracts:  This is the middle ground between Active and Sold. We will have to wait a little while before we learn the selling price but it does give us some helpful information in terms of knowing the listing price that elicited the offer and the Days on Market (DOM) before reaching this status.

 

Sold Listings:   Concentrate on these as they are your comparable sales but, only the last six months reflect current market value. These are the sales that an Appraiser will use when appraising a home for a Buyer.

 

Expired/Withdrawn/Canceled:  For one reason or another, these properties were taken off the market. Normally, you might assume that the house did not sell because of a too-high listing price; however, there can be other reasons:

 

  • The Sellers decide that no other home can possible compare to the one they already own
  • The Sellers received only low-ball offers that they rejected because it didn't yield them enough of a profit to purchase something new in a desired area.
  • The property was on the market so long, it became stale. It's taken off for a while to "rest" and will be brought back refreshed at a later date.
  • The Seller has refused to make the repairs that surfaced as necessary during an inspection and the contract falls apart.
  • The listing has changed hands and is with a new broker.
  • The property was listed but then not marketed.

 

What information are Agents looking for when compiling a Comparative Market Analysis (CMA)?

 

Essentially, they're looking for similarities to help determine a property's worth.

Style, age, construction, condition, location, amenities and upgrades all come into play.

Unique properties are more difficult to assess.

Comparables paint a realistic picture. No agent is licensed to pick a number from a hat. All data needs to be substantiated for it to be valid.

If you're thinking of selling and would like to know your home's current value, reach me at 516.395.8376. You'll get the service you deserve!

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Long Island Real Estate Needs? 

Reach me @516.395.8376

 

Long Beach is a diverse community that is never short on entertainment. Interested in moving to Long Beach?

Don't hesitate to call me and we can begin our tour.

 

 

CHARLES RUTENBERG REALTY INC.  *****  516-575-7500  *****

ABOUT THE AUTHOR: Graduate REALTOR Institute 

Jill Sackler, NYS Real Estate Broker Associate based on Long Island's South Shore
 
 

Sunny Isles, Fl 

 

  

     Specializing in Lifecycle Real Estate Transitions

"When your family doesn't fit your family home, I can help."
 
 
 
 
 
   
   

   

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©Jill Sackler 2010
 

 

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Ambassador
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Hi Jill,  Very good definition of the CMA.  Many people are confused by our special LINGO

Mar 13, 2014 08:27 AM #1
Rainmaker
3,815,782
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good evening Jill. Nicely done. Clear concise and well written. Suggested.

Mar 13, 2014 09:35 AM #2
Rainmaker
2,547,926
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Hi Jill, your explantion of terms for a comparative market analysis (CMA) is well done and easy to understand.

Mar 13, 2014 11:00 AM #3
Rainmaker
774,128
Joanna Cohlan
Fresh Eyes For Your Home - Chappaqua, NY
Designing, Decorating & Staging Westchester Homes

Hi Jill, great explanation and as far as I know, the CMA is critical for sellers.  The Realtors I work with use them to also show clients how much more their homes could sell for if they were staged to be best in their class!

Mar 13, 2014 01:30 PM #4
Rainmaker
2,312,942
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Jill. After reading your post, if I was a prospective seller, I would know one thing for sure, you will give me the right value. Great job with your post.

Mar 13, 2014 07:50 PM #5
Rainmaker
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Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Great explanation Jill of a CMA. Most of the time, the seller just wants to hear the bottom line..."What's my house worth", but this shows how we arrive at the right value!

Mar 13, 2014 09:40 PM #6
Ambassador
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Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Very good model for a CMA Jill. These are so important to help a buyer or seller and show that it is more then just our opinion.

Mar 13, 2014 11:33 PM #7
Rainer
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Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Great job Jill of explaining the lingo and the importance of what we as agents do to help define the expected price range for a home to sell. While similar it is certainly not a replacement of an appraisal. Well done.

Mar 14, 2014 05:05 AM #8
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I know they are somewhat subjective but they do nail down the pricing range. I tend to still get surprised how it turns out.

Mar 14, 2014 01:20 PM #9
Rainmaker
5,680,514
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is good advice for prospective home sellers. 

Happy St. Patrick's Day!

Mar 16, 2014 09:32 PM #10
Rainmaker
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Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Good Morning Jill: Based on your description above, I can see you presenting your CMA to the seller with full confidence.

Mar 17, 2014 09:17 PM #11
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Jill Sackler

LI South Shore Real Estate - Broker Associate
Long Island Living - Where Memories Are Made
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