The Competitive Market Analysis, or CMA, is a great resource and tool when selling a home. It can be used to help determine the list price of the house.
The way a Competitive Market Analysis works is really quite simple. The agent examines your home’s style, square footage, number of bathrooms, location, etc. This can be done over the phone or in person. Of course, if the real estate agent actually comes to your house, you are probably more likely to get an accurate assessment of your home’s worth. Next, the agent looks at recent sales in your area of similar homes. The agent can also look at all of the homes in your neighborhood that have recently sold or that were listed and did not sell. Using these comparisons, the real estate agent determines what the value of your home is.
When preparing a Competitive Market Analysis, the real estate agent needs to be sure to be as current as possible with the recent sales. Home prices can appreciate quickly, so depending on the market, even a sale just a year ago can be outdated. If the comparisons are kept within just a few weeks, it gives a more accurate idea of your home’s worth.
Also, a Competitive Market Analysis is a free service offered by real estate agents. If you are planning to sell your home, contact several real estate agents and have them all do a Competitive Market Analysis on your home. You can compare what the results are and maybe choose the real estate agent who believes s/he can get the most for your home.