What is a CMA?
A comparative market analysis is a crucial tool for estimating the value of real estate. If you’re a homeowner who is interested in listing your property for sale, a CMA will help you determine an appropriate asking price based on what sales prices similar homes in your area have received on the market.
What is the purpose of a comparative market analysis?
A comparative market analysis (CMA) estimates a home’s price based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and help buyers make competitive offers.
A competitive market analysis looks at homes in a given area that share many of the qualities of the home that is being sold. For example, the analysis will look at properties that share comparable lot sizes, similar square footage and the same number of bedrooms and bathrooms.
Who typically performs a CMA?
A listing agent or buyer’s agent typically performs a CMA in real estate. You can perform a CMA yourself, though it will be difficult to do it accurately without the resources that real estate agents have at their disposal
How is a CMA calculated?
The CMA Result is calculated by multiplying the price per square foot of your lowest and highest comps to the living area of your subject property creating the range. The CMA Result is the average. Lowest price per square foot comp x number of square feet of subject property = low end of range.
The CMA Result is calculated by multiplying the price per square foot of your lowest and highest comps to the living area of your subject property creating the range. The CMA Result is the average. Lowest price per square foot comp x number of square feet of subject property = low end of range.
sources: narrpr blog, investopedia, quicken loans, rocketmortgage, bankrate