Your Home: How does it measure up?
Whether buying, selling or refinancing, it's important to know your home's market value. A Comparative Market Analysis (CMA) is a tool that can help determine what a wiling-and-able buyer would pay for a home by comparing it to similar properties that have recently sold in the area.
- Recent selling prices for homes similar to yours.
- The length of time these homes were on the market before they sold - how long it will likely take for your home to sell.
- The homes you would be "competing with" should you decide to list your home right away.
- A CMA can help you determine how much to offer on a listing you want to purchase.
- A CMA will give you some indication of what to expect when you have your home formally appraised.
- A completed CMA typically includes a recommended price range for your property. Some real estate agents may also make observations about the property or its perceived selling points.
- Keep in mind that estimating the sales price of your home through a CMA involves a certain amount of interpretation. It's easiest to get accurate sales prices in housing tracts where all homes are very similar, while it's more difficult in neighborhoods with a lot of variability in home size, style and condition. Know, however, that a CMA prepared by an agent with awareness of the local area is usually a good indicator of the market value.
- Whether you are a buyer or a seller, remember that a CMA is not an appraisal. A real estate appraisal is a comprehensive evaluation performed by an independent professional appraiser that involves additional data and processes.
- Even if you don't plan to buy, sell or refinance a home, a CMA can be a helpful tool for determining your net worth for estate planning, insurance coverage or borrowing purposes.
- Remember that a CMA is a "snapshot" in time. The market constantly fluctuates, so it's important to obtain a new CMA each year from your trusted real estate professional.