CMA REQUEST

A Comparative Market Analysis (CMA) is a report used by real estate agents to estimate the fair market value of a property by comparing it to similar, recently sold homes in the same area. It's not a formal appraisal, but it can help determine a listing price for sellers and a fair offer for buyers. 

What Is A Comparative Market Analysis (CMA)?

❖ A CMA is a tool used to assess the value of a property based on the sales prices of comparable properties (known as "comps") in the same neighborhood. 

❖ It helps determine a reasonable listing price for sellers and helps buyers assess the value of a property they are interested in. 

❖ CMAs are typically prepared by real estate agents and brokers. 

How It Works:

❖ Real estate agents research recently sold homes (comps) that are similar to the subject property in size, features, condition, and location. 

❖ They analyze the sales prices of these comps and adjust them for any differences between the subject property and the comps. 

❖ The adjusted sales prices are then used to estimate the value of the subject property. 

Key Elements Of A CMA:

❖ Comparable Properties (Comps): Similar properties that have recently sold in the same area. 

❖ Property Features: Details about the subject property, such as size, number of bedrooms and bathrooms, condition, and special features. 

❖ Adjustments: Adjustments made to the sales prices of the comps to account for differences between the comps and the subject property. 

❖ Value Estimate: The final estimate of the fair market value of the subject property. 

Why It's Important:

❖ For Sellers: Helps determine a competitive listing price that will attract buyers and lead to a sale. 

❖ For Buyers: Helps determine a fair offer and avoid overpaying for a property. 

❖ For Agents: Provides a professional and data-driven way to estimate property value and demonstrate their expertise. 

Difference From An Appraisal:

❖ A CMA is a more informal evaluation, while an appraisal is a formal valuation by a licensed appraiser. 

❖ CMAs are used to estimate value before a contract is signed, while appraisals are typically done for lending purposes. 

❖ Appraisals are more detailed and require a licensed professional, while CMAs are typically done by real estate agents. 

In essence, a CMA is a valuable tool for real estate agents and clients to understand the current market and determine a fair price for a property.