What is Comparative Market Analysis?

Comparative Market Analysis

When pricing your home, it is important to do a comparative market analysis. But what is a CMA?

Most people underestimate the power of a good price when selling a home, but it is some one thing that can set you apart from other homes on the market. But how does your agent choose the right price for your home? It is done by a science known as the Comparative Market Analysis. But what is this magic and how does it help you sell your home?

What is a Comparative Market Analysis?

A comparative market analysis (CMA) is a report generated by your Simply Referable real estate agent before your house is placed on the residential market. CMAs gives you information about houses that are similar to yours in size, amenities, and location that are either on the market now, have sold in the past three months or have expired from the market after being listed. A CMA allows you to look back no more than three to six months and get a sense of what your home is really worth. What do these reports look at specifically?

What Do CMAs Compare?

CMA reports tell you what your homes like yours are actually selling for, how long it takes the houses to sell, and what their final sale prices are in relation to their list prices. It is important to pay attention to pending prices because they are the most recent prices. These reports compare to homes that closely resemble your home. It is hard to find identical homes so it is important to view a home for its size, shape, and condition. Your Simply Referable agent will look for similar square footage, the age of construction, amenities and upgrades, condition, and location in order to get an accurate amount. A house that was built in the 1960s could not possibly compare to a house built in 2008 so comparing them in price is not even possible. But a home that is of similar age, square footage, and location should be compared and price similarly. There are many things your Simply Referable real estate agent will look at when helping you price your home and a comparative market analysis will help price your home correctly. For more information on these reports and to help price your home correctly, call Simply Referable today!

Get a Comparative Market Analysis with Simply Referable

The small team of realtors at Simply Referable is deeply focused on creating a memorable selling experience for you and your family. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.