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
The definition of restraint on alienation is a limitation on the right to convey or transfer owned real estate to another party. This restriction on conveying property has an effect that ...
Derogative term describing a high-pressure telemarketing office where sales personnel often use extremely exaggerated claims as well as intense sales practices to convince targets clients ...
Investment made rationally and intelligently as would be expected by a professional person. A reasonable degree of safety and return are expected. A example is an office building with 99% ...
Tax concept whereby income not actually received is considered to be constructively received by a taxpayer and thus must be reported. An example is a bond interest coupon. The interest is ...
Process by which a lessee rents his apartment to another. ...
The equity in property because of work in it by the buyer or holder which directly increases its value. ...
Market condition in which sellers exceed buyers, thereby causing prices to fall. In real estate, declining markets may result from unfavorable business conditions and high interest rates. ...
Enumeration of the consideration given by each party to a contract which in some cases must be in written form to be enforceable. For example, the statute of frauds requires that all ...
Assets owned by an individual as part of his or her estate except for land and everything attached to the land. Personal property may be either tangible, having physical substance such as ...
Have a question or comment?
We're here to help.