What is a CMA and Why Do You Need One?

CMA is real estate shorthand 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.

Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser. It should be considered only as an educated opinion about the home's probable value.

A good CMA will take into account recent sales, pending sales, and current listings that are within the same neighborhood and have similar characteristics as the subject property.

The first thing an agent will need to do to provide you with a CMA is to inspect your property. 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 an open house. 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.

The CMA process takes place before your home is listed for sale. 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. Owners who are upgrading or remodeling can benefit from a CMA when it's used to see if the intended changes will "over-improve" their property compared to others in the neighborhood.

 

 

   


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Canion Investment Group Real Estate
Ph: 1-646-688-4114  -  Fax: 1-646-688-5157
295 Madison Avenue, 12th Floor
New York, NY 10017
www.canionig.com

All building, property and apartment information is from sources deemed reliable but is subject to errors, omissions, changes, in price, prior sale or withdrawal from market without notice. No representation is made as to the accuracy of any description or the usage of the property. All measurements are approximate. For exact dimensions, you must hire your own architect or engineer. Canion Investment Group operates in accordance with the Fair Housing Act, Title VIII of The Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (Disability).
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