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How to Get a Comparative Market Analysis for a Home (CMA)
Home buying is a complex process, and it can be difficult to know where to start. One of the most important steps is getting a comparative market analysis or CMA for a home. This will give you an idea of what a home is worth in the current market. In this article, we will explain how to get a CMA and what to expect from the process.
What is a CMA?
A comparative market analysis is a report that compares a property to similar properties in the area. The report will look at recent sales of similar homes, as well as current listings. This information will give you an idea of what a home could sell for in the current market.
To get a CMA, real estate agents usually need to ask for some information about the home, such as the address, square footage, and number of bedrooms and bathrooms. Real estate agents will then look at comparable properties or homes in the area and put together a report.
The Main Components of a CMA Report
The main components of a CMA report include location, lot size, square footage, age and condition of property, number of bedrooms and bathrooms, special features, date of sale, sold price or sales price, and terms of financing and sale. Rule of thumb for an experienced real estate agent is three comparable properties (or comps) or details of three similar properties.
The report will include information on recent sales of similar homes, as well as current listings of similar properties. This information will give you an idea of what the home could sell for in the current market.
It allows you to know the current market value of the subject property. The report will also include information on the average price per square foot in the area. This information can be useful when negotiating with buyers.
We have also written about how to negotiate real estate, which will definitely be helpful to you!
Once you have the CMA report, you will need to decide whether to list the home for sale or wait for a better time to sell. If homeowners are planning to sell in the near future, you will need to price the home competitively. If they are not planning to sell soon, you may want to wait for a better time to put the home on the market.
No matter what your plans are, a CMA can be a useful tool in the home buying process. It will give you an idea of what the home is worth in the current market and help you make informed decisions about selling or waiting to sell.
Why Get a CMA?
A comparative market analysis is a useful tool for anyone who is buying or selling a home. The report will give you an idea of what the home is worth in the current market. A comparative market analysis is helpful to home sellers, home buyers, investors and refinancers.
If you are planning to sell the home in the near future, a comparative market analysis can help you price the home competitively. If you are not planning to sell soon, a CMA can also help you decide whether to wait for a better time to put the home on the market.
No matter what your plans are, a comparative market analysis can be a useful tool in the home buying or selling process. By having data from at least three comparable properties, a comparative market analysis will give you an idea of what the home is worth.
A CMA Example
In order to help you understand how a comparative market analysis works, let’s look at an example.
Imagine a three-bedroom, two-bathroom home. You are thinking about selling the home and want to know what it is worth in the current market. You create a comparative market analysis.
Look at comparable properties or homes (or comps for short) in the area and find three recent sales of similar homes. The first home had a sold price of $200,000, the second home had a sold price of $210,000, and the third home had a sales price of $220,000. Also look at current listings of similar homes and find that the listing price ranged between a sales price of $230,000 and a listing price of $240,000.
Based on this information, you can conclude that the home is worth a listing price between $210,000 and $220,000 in the current market. You will provide a report that includes this information or the estimated fair market value of comparable properties.
The report will also include information on the average price per square foot in the area, especially in the local market. This information can be useful when negotiating with buyers. Adjusted sales prices on the subject property can be based on these comparable sales.
| Subject Property | Comp No. 1 | Comp No. 2 | Comp No. 3 | |
|---|---|---|---|---|
| Price | $220,000 | $200,000 | $210,000 | |
| Date Sold | 2 months ago | 5 months ago | 4 months ago | |
| Condition | New | Older | New | New |
| Bedrooms | 3 | 4 | 3 | 3 |
| Bathrooms | 2 | 3 | 2 | 2 |
| Lot Size | 2 acres | 3 acres | 1 acre | 2 acres |
| Garage | 2 car | 2 car | 2 car | 2 car |
| Basement | Finished | Unfinished | Finished | Unfinished |
| Square Footage | 1,000 | 1,500 | 1,000 | 1,300 |
Once you have the comparative market analysis (CMA), you will need to decide whether to list the home for sale or wait for a better time to sell. If you are planning to sell in the near future, you will need to price the home competitively. If you are not planning to sell soon, you may want to wait for a better time to put the home on the market.
No matter what your plans are, a comparative market analysis can be a useful tool in the home buying process. It will give you an idea of what the home is worth in the current market and help you make informed decisions about selling or waiting to sell. As a licensed real estate agent, you will be able to help your client get a comparative market analysis for the home.
