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
Real estate sales contract where possession and use is provided to the buyer, but the deed is kept by the seller until the full purchase price is met whereupon the title is placed in the ...
Value of property is reduced form usage oven time. The problem is worsened when repairs and maintenance have not been made. ...
Money payments to be delayed for a future date or extended over a period of time. ...
See concrete block. ...
Generally speaking, the meaning of warehousing refers to the act of storing assets and keeping a physical inventory expecting a sale or distribution of goods at a later date. Warehousing is ...
If you’re a renter and you own a pet, you might be familiar with the term pet rent. There has been a lot of discussion about the meaning of pet rent and controversy as it isn’t ...
The geographic moving of an individual from one region to another usually because of a change in employment. Relocation normally involves the complete moving of the individual's ...
The phrase used for the period in which the escrow agent communicates to both the buyer and the seller as to what documents or moneys have to be deposited with the escrow agent to satisfy ...
Property that is similar in characteristic and when exchanged is a nontaxable transaction. Any property that is not like-king, such as cash (boot), is taxed. As a result, a gain is not ...
Have a question or comment?
We're here to help.