Comparative Market Analysis (CMA)
Definition of "Comparative Market Analysis (CMA)"
That’s the name of the study a Real Estate Broker presents to home sellers when trying to turn them into clients. In it, by making a comparison with the available houses in the market - and how much they are asking for - the homeowner gets to find out what their asking price should be.
The comparative market analysis (CMA) can span from two-pages to a hundred; it depends on how thorough and comprehensive the analysis is, and how complex is the house (or the market) in question. More and more comparative market analysis (CMA) are generated in specialized software that cross-references data from several sources of recent sales in specific markets, showing days on the market, average sales price, local minimum and maximum sales prices, the reasons why some houses did or didn’t sell, and even information like the best time to sell a property in that region.
Making a Comparative Market Analysis (CMA) can be quite toilsome. The reason why Brokers and Real Estate Agents do all this work of suggesting a sales price, explaining the reasons behind it and even including a marketing plan to sell the house is to convince the homeowner to list the house with them. To show they know how the market behaves and will be the best person for the seller to trust the house with.
If you’re a home seller, it is important for you to ask Comparative Market Analysis to more than one broker or agent. Results may vary, and you want to make your own comparison between what is presented you. Don’t necessarily go for the broker that priced your home the highest; weeks after you sign a contract they may come with new more realistic calculations.
You haven’t gotten a Comparative Market Analysis (CMA) yet? Call one of our real estate agents and ask them to make you one!
Popular Real Estate Terms
Type of flooring, made up of tiles of colored stone or marble that is set in concrete. ...
Right to an item belongs to the public at large so anyone can use it. An example is a real estate software program that is publicly available by an electronic bulletin board service. ...
A natural process of adding soil to land, usually by water action, leaving earth or sand deposits. This can take place through unusual events such as flooding or storm conditions, or ...
A step's edge. ...
Early American frontier-style house constructed of logs. Since finished lumber was not readily available during the early frontier period of American history, homes were often fashioned out ...
A knowledgeable person authorized to aid in the underwriting of property and casualty insurance. ...
Lessors of real estate play a crucial role in the leasing process. They enable property owners to boost their assets and profits while providing tenants access to dwelling spaces and ...
A way to sell and finance property by which the seller keeps title but the buyer takes possession while installment payments are being made. The gain is taxed while the mortgage ...
Highest bid to buy and the lowest offer to sell a parcel of real estate in a particular market at a specified time. ...
Have a question or comment?
We're here to help.