If you are in the market to sell property, one of the first things you must do is determine a realistic price. If you ask too much, you risk the property sitting on the market for an extended period, but too low of a price will leave money on the table. One of the tools your real estate agents may offer you is a Comparative Market Analysis or CMA. But what is a CMA, and how is it calculated? Read on for more information.
How Is Fair Market Value Established?
Determining the fair market value of a property is challenging due to the ever-changing real estate market conditions. Some of the factors you must consider before posting your real estate listings include the following:
Pending real estate projects in the surrounding area may also impact your price. For example, if there are plans to build a school or grocery store nearby in the next couple of years, this may increase your property value. But if the plans are for a landfill, it may lower your property value.
How Is Your Comparative Market Analysis Prepared?
A CMA is a tool that helps you establish a property's value by evaluating similarly sized properties that have sold in the area in the recent past. These comparative properties are called comps or comparable sales. Looking at these comps, your agent can determine how much or how little buyers would pay for similar properties.
Your agent will try to find at least three properties in the same general area similar to what you are selling. They will search for the most recent sales, preferably those that have taken place in the last three to six months. Current transactions are essential due to how quickly real estate pricing changes based on supply and demand. If agents cannot find comps within this criteria, they may use pending sales in the area.
Your agent will also consider the overall market conditions, your expectations as the seller, and other aspects that may impact your sale. Your agent will then compare the similarities and differences and then adjust the potential price of your property accordingly.
Is A Comparative Market Analysis An Appraisal?
A comparative market analysis is not an appraisal of your property, although your agent uses similar factors in its preparation. Licensed home appraisers must complete appraisals, while real estate agents complete CMAs.
Reach out to a real estate agency near you to learn more.
Share14 December 2022
Do you absolutely adore your home, but are planning an upcoming move due to a career change? If you’re moving in the near future, you might desperately desire to sell your current home as soon as possible. To help you accomplish this important task, consider hiring an experienced, real estate agent in your community. This individual can help you select the perfect selling price for your house. Your real estate agent can also provide valuable information about staging your home to perfection. For instance, to make your home more inviting, your real estate agent might suggest you purchase new bedding, window treatments, and artwork. On this blog, I hope you will discover how a real estate agent can help you sell your home fast. Enjoy!