3 Things To Know About A Comparative Market Analysis When Selling Your House
When you schedule an appointment for a real estate agent to come to your home to learn more about listing it, one of the first things he or she will do is complete a comparative market analysis (CMA). This is a very common tool in the real estate industry, and here are several things you should understand about CMAs.
What it is
A CMA is a report a real estate agent creates when a person wants to sell his or her home. This report contains a list of similar homes that recently sold from your area. The point is to get a good idea as to how much similar homes sold for, and this is important as the real estate industry changes all the time.
How the agent creates the report
To create this report for your home, the agent will need to spend some time researching current real estate sales in your area. The goal will be to find homes that are as closely related to yours as possible. They might be homes from your own neighborhood or communities very close to yours, and the homes should have similar features as yours.
Once the agent locates good homes to use for the report, it will be easy to compare your home to these homes, and this will reveal a lot of information about how much your home might sell for.
How the agent uses the report
When the agent creates the report and shows it to you, the purpose is to help you come up with the right asking price for your home. You and the agent can compare the features your home offers to the features of the homes used in the report to determine what a reasonable and accurate asking price would be for your house.
For example, if there is a home that is similar to yours but has one less bedroom, the agent might add a little bit of money to your home to account for the extra bedroom your home has to offer. On the other hand, the agent might deduct a little if your home has one less bedroom than the comparable home.
If you want to list your home, you can call a real estate agent to learn more. The agent will create a CMA for your home, and he or she will discuss it with you during your first meeting to understand how much your home can sell for.
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