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What is a CMA and Why Do You Need One?

A Comparative Market Analysis or CMA is a report that agents use to help determine the proper value of your home. It helps them to price your home based on other similar properties in your area. It is not an appraisal. It does not require an official inspection to produce.

It is important to know how much your home is really worth because homes that are overpriced tend to linger on the market for months and months. When a home is listed for more than 90 days, buyers start to get suspicious about the reason why, which often produces a domino effect. If interest is low it will deter other prospective buyers from considering your property.

You could have a perfectly lovely home that would have attracted a stampede of prospective buyers if only it was priced right. That is why a CMA is so important. It should be done before you list your home.

How Does a CMA Help You?

Both buyers and sellers use CMAs to their benefit. Buyers often request one in order to determine whether or not your home is overpriced. Besides helping to ensure that your home is priced appropriately, the CMA can also help you avoid making unnecessary improvements before the sale. If you’ve been thinking about remodeling your kitchen or replacing the siding, the CMA will show you which improvement will net you a higher ROI in your area.

Before you begin knocking down walls and laying tile, have a CMA produced so that you spend your money wisely when making improvements or upgrades before listing your house.

Who Produces the CMA?

Again, the CMA is not an appraisal. It is not done by an appraiser, but by the seller’s agent. Your agent will come to your house and do a general inspection of your home. It’s not as in-depth as a full inspection or appraisal. Your agent will just assess the overall condition of your home compared to others in your neighborhood.

Using market data specific to your location, your agent will analyze current market trends, assess how much similar homes in your neighborhood are selling for, and will use that information to set your asking price. Because your agent has access to listings that are not publicly listed and up-to-date market information, they are perfectly suited to produce the CMA for you.

Therefore if you are planning to make any upgrades or improvements, you should let your agent know when they come to assess your home. They can use that information to make a much stronger assessment and will be able to make recommendations about which improvements are most beneficial to you.

Is a CMA Mandatory?

The CMA is not mandatory but it is necessary. Your agent’s job is to put you in the best position to get a good return on your home. There are many reasons to use an agent to help you sell your home. Using an agent to produce an in-depth CMA so that you can price your home to move is one of the main reasons why. Contact Premiere Properties now to discuss how they can help you set the right price for your home today!