What is a CMA and Why Do You Need One?
CMA is real estate shorthand for “Comparative Market Analysis”. A CMA is a report prepared by me, your agent, assembling data comparing your property to similar properties in the marketplace. The first step is to inspect your property. Generally, this inspection won’t be overly detailed (No one will be crawling under your home to examine the foundation), nor does the home need to be totally cleaned up and presentable for an open house. It should be in such a condition that I would be able to make an accurate assessment of its condition and worth. If you plan to make changes before selling, I should be informed of such.
The next step is for me to obtain data on comparable properties. This will give me an idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. Only a licensed appraiser must perform an appraisal. The CMA process takes place before your home is listed for sale. This is a fair assessment of what your house could potentially sell for. CMAs are not only for prospective sellers. Buyers sometimes consider requesting a CMA 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. Please feel free to lean on me for help in making these types of renovation decisions. I was a licensed builder and I encourage you to utilize my knowledge. I am an expert in making sure that the money allocated for renovation towards improvements will maximize your return on investment.