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
A triangular shaped end of a building where a double sloped roof meets at the top of the triangle. A gable begins at the eaves of a roof and terminates at the roof ridge. ...
Early American style 1 story house with a steep gable roof covered with shingles. The bedrooms are on the first floor, but the attic is often finished and made into additional bedrooms. ...
Local geographic area with similar characteristics. It may be referred to by name (e.g., Brooklyn Heights, Palisades) and have designated boundaries. There are major streets such as for a ...
Removal of a tenant from a portion of a rented or leased premise. ...
Person who leases rented premises from the initial lessee. The sublease is for a time not exceeding the original lease period. ...
(1) Financial ability and soundness of a business or individual to afford the purchase of property. (2) Worth of the dollar in real terms considering inflation. ...
House design to be easily expandable. ...
The float has several meanings in the financial world and the real estate terminology. Typically, the float refers to the number of funds, represented by checks, that an institution or an ...
Defendants legal objection to the prima facie sufficiency of a judicial pleading. It is a motion to dismiss an action on the ground there is no apparent equity violation, the court has no ...
Have a question or comment?
We're here to help.