A comparative market analysis (CMA) is an evaluation of similar, recently sold homes (called comparables) that are near a home intended to be bought or sold. Preferably in the same subdivision. Comparative market analysis establish the current market value of the home and are usually prepared by real estate agents. A comparative market analysis is not the same as an appraisal, which is performed by a licensed appraiser.
Setting the right price from the start is among the most important steps toward successfully selling your home. This requires taking a close look at what other houses are selling for to judge the relative value of your home. No matter how priceless your remodeled kitchen or finished basement are, the market sets a value— which is the price a buyer is willing to pay.
One of the key ways to compare your home to others on the market is to look at a comparative market analysis, or “CMA.”
I will create a CMA by utilizing the recent sales data and using my personal knowledge of the local market. I will compare your home with homes that are most like yours in your neighborhood, or similar neighborhoods nearby. A comparable home/property is one that is of the same type (single-family, multi-family, commercial, etc.), is in similar condition inside and out, and has the same or close to the same number of units and land/living area size.
Some factors that will be considered are:
- Comparable properties that have recently sold (3-6 Months),
- Properties that are currently listed in the Multiple Listing Service (MLS),
- How long similar properties have been on the market,
- Property listings that have expired or have not sold,
- Location (such as corner lot, school district, street traffic, proximity to hi-ways etc.)
What’s in a Comparative Market Analysis
A CMA gives you information about homes similar to yours (in size, amenities, and location) that are either on the market, have sold, or were listed but expired (usually, because they were priced too high or marketed poorly and no one bought) within a reasonably recent time period. It’s ideal to have your CMA look back no more than three months when the market is in transition, and no more than six months in a more stable market.
A good CMA can tell you:
- what homes like yours are actually selling for
- how long it’s taking for them to sell, and
- what their sale prices were in relation to their list prices (the difference between what people actually got for their house and what they asked for).
This form will ask for many of the details of your home that will have bearing on your home value. Many of these items, such as square feet, I will pull up from the Texas tax records, but the more information you give me the better I can do in the calculation of this CMA. Sometimes, the Tax Info does not agree with reality. Give me as much information as you can.
Home Valuation Request Form