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What is
a CMA? CMA is real estate shorthand for
“Comparative Market Analysis.” A CMA is a report
prepared by a real estate agent providing data
comparing your property to similar properties in the
marketplace.
The first thing an agent will do to provide you with
a CMA is to inspect your property. Generally, this
inspection won’t be overly detailed (he or she is
not going to crawl under the house to examine the
foundation), nor does the house need to be totally
cleaned up and ready for an open house. It should be
in such condition that the agent will be able to
make an accurate assessment of its condition and
worth. If you plan to make changes before selling,
inform the agent at this time.
The next step is for the agent to obtain data on
comparable properties. The data is usually available
through the MLS (Multiple Listing Service), but a
qualified agent will know of properties that are on
the market or have sold without being part of the
MLS. This will give the agent an idea how much your
property is worth in the current market. Please note
that the CMA is not an appraisal. An appraisal must
be performed by a licensed appraiser.
The CMA process takes place before your home is
listed for sale. This is a good assessment of what
your house could potentially sell for.
CMAs are not only for prospective sellers. Buyers
should consider requesting CMA’s for properties they
are seriously looking at to determine whether the
asking price is a true reflection of the current
market. Owners who are upgrading or remodeling can
benefit from a CMA when it’s used to see if the
intended changes will “over-improve” their property
compared to others in the neighborhood. |
