Comparative Market Analysis (CMA)
Definition of "Comparative Market Analysis (CMA)"
That’s the name of the study a Real Estate Broker presents to home sellers when trying to turn them into clients. In it, by making a comparison with the available houses in the market - and how much they are asking for - the homeowner gets to find out what their asking price should be.
The comparative market analysis (CMA) can span from two-pages to a hundred; it depends on how thorough and comprehensive the analysis is, and how complex is the house (or the market) in question. More and more comparative market analysis (CMA) are generated in specialized software that cross-references data from several sources of recent sales in specific markets, showing days on the market, average sales price, local minimum and maximum sales prices, the reasons why some houses did or didn’t sell, and even information like the best time to sell a property in that region.
Making a Comparative Market Analysis (CMA) can be quite toilsome. The reason why Brokers and Real Estate Agents do all this work of suggesting a sales price, explaining the reasons behind it and even including a marketing plan to sell the house is to convince the homeowner to list the house with them. To show they know how the market behaves and will be the best person for the seller to trust the house with.
If you’re a home seller, it is important for you to ask Comparative Market Analysis to more than one broker or agent. Results may vary, and you want to make your own comparison between what is presented you. Don’t necessarily go for the broker that priced your home the highest; weeks after you sign a contract they may come with new more realistic calculations.
You haven’t gotten a Comparative Market Analysis (CMA) yet? Call one of our real estate agents and ask them to make you one!
Popular Real Estate Terms
Property deriving at least 75% of the income from personal residences. ...
Funds that are retained in an account until a certain event occurs. For example, a downpayment on a contract held until full payment is received whereupon the holding funds are credited to ...
Same as term closing: legal process of transferring a piece of real estate to a buyer. Typically it occurs in the office of the lender, attorney, or an escrow company. ...
When we think of rural property or rural real estate, most of us think of farms, properties with large areas designated to agricultural land. That’s how rural communities generally ...
A right or interest in property held by a third party, which often limits the use and diminishes the value of the property, but usually does not prevent the transferring of title. The more ...
What is reconciliation in real estate? Both aspiring appraisers and wannabe real estate agents know the definition of reconciliation in real estate. In appraisal, it refers to the process ...
Commonly, a covenant refers to a legal treaty or agreement between various parties. Explicitly, a stipulation comes into existence and is signed to confine particular financial transactions ...
Process determining an individual's financial ability to meet the terms of a loan. When selling real estate, the sales broker must qualify the buyer to make certain he/ she has the ...
Any gain or loss from selling of capital assets. The gain or loss is the difference between the net selling price and cost basis. The two types of capital gains or losses for tax purposes ...
Have a question or comment?
We're here to help.