What is a CMA and why is it important?

When thinking about selling real estate, the first question that comes mind is usually its value.

What is my house worth? To determine the sales price of real property we use a CMA, which stands for “comparative market analysis”.

This study of sold and closed properties shall be as similar to the property to be evaluated as possible. Several aspects such as the number of bedrooms, bathrooms, square footage, year built, style and location will be compared. What homes “have sold for” in the past is the foundation for this analysis.

Sometimes sellers have a list price in mind based on their own research. The CMA gives direction for pricing a house but other factors may be included, too.

The final list price can be determined by multiple factors such as the seller’s price goal, the CMA suggested price, and other available properties competing on the market.

Therefore, a CMA is a valuable and highly recommended study of property value but is only one element to price real estate.

The more unique a real property is, the more resources need to be considered to determine a sales price.

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