In today's highly competitive real estate market, pricing your home RIGHT is critical. Price it too high and your home will frighten away potential buyers and languish on the market. Price it too low and you forfeit your hard-earned equity.
When it comes to listing your home for sale, you want to keep your costs low so you can keep as much of your home equity as possible - to help you maximum your profit on the sale of your home, we offer a low-cost Listing Program: 4.9% Listing Program. Check the links for more information on saving thousands of dollars when you sell your home.
A Home Value Report or Comparative Market Analysis (CMA) is a detailed real estate valuation tool used to determine a property's estimated market value. It is prepared primarily by real estate agents and brokers to help homeowners, buyers, and investors make informed decisions.
Purpose of a CMA
For Sellers: Helps determine a competitive listing price to attract buyers while maximizing profit.
For Buyers: Assists in determining a fair offer price to avoid overpaying for a property.
For Investors: Provides insights into the potential value of a property for investment or resale purposes
.
How a CMA is Conducted
1. Gathering Property Details
- The subject property’s characteristics (square footage, number of bedrooms/bathrooms, lot size, location, age, condition, and amenities) are analyzed.
- Special features (renovations, swimming pools, upgraded kitchens, etc.) that could impact value are noted.
2. Identifying Comparable Properties (Comps)
- Recently Sold Homes: Typically within the last 3-6 months, ideally in the same neighborhood.
- Active Listings: Current homes on the market, indicating competition and pricing trends.
- Pending Sales: Homes under contract that provide insight into buyer demand.
- Expired or Withdrawn Listings: Properties that failed to sell, possibly due to overpricing or lack of demand.
3. Adjusting for Differences
- Since no two properties are exactly alike, adjustments are made for differences between the subject home and comps.
- Example: If a comparable home sold for $400,000 but had an extra bedroom, an adjustment is made to estimate the subject home's true value.
4. Market Trends Analysis
The local real estate market (buyer’s vs. seller’s market) affects pricing strategies.
Supply and demand, interest rates, and economic conditions also influence value.
CMA vs. Appraisal
| Feature | CMA | Appraisal |
|---|---|---|
| Who Performs It? | Real Estate Agent/Broker | Licensed Appraiser |
| Purpose | Estimate market value for pricing or buying decisions | Official valuation for lenders and financial institutions |
| Data Used | Recent comparable sales, active listings, and market trends | More in-depth analysis, including lender requirements |
| Legally Binding? | No | Yes (for lending purposes) |
| Cost | Usually free | Typically $300-$600 |
Benefits of a CMA
- Helps price a home competitively to sell faster.
- Gives buyers confidence in making an informed offer.
- Provides sellers with insight into their home’s value based on real market data.
- Can reveal market trends that impact future pricing strategies.
Our Home Value Report or CMA delivers superior results - Results you can count on!
The information you provide will enable us to accurately complete the comparative market analysis on your home - we will email you the results within 24 hours. Make sure your phone number is correct, so we can clarify any question we may have about your home.