No two homes are identical, which is why choosing a sales price or offer price for a home can bechallenging. That’s where the comparable market analysis, or CMA, can be useful.
What is a CMA?
The CMA is a side-by-side comparison of homes for sale and homes that have recently sold in the sameneighborhood and price range. This information is further sorted by data fields such as single-family orcondo, number of bedrooms, number of baths, zip codes, and many other factors. Its purpose is to showfair market value, based on what other buyers and sellers have determined through past sales, pendingsales and homes recently put on the market.
How is the CMA created?
CMAs are generated by a computer program supplied by your real estate agent’s multiple listing service(MLS). The MLS is available to licensed members only, including brokers, salespeople, and appraisers,who pay dues to gain access to the service’s public and proprietary data, including tax roll information,sold transactions, and listings input by all cooperating MLS members.
Listing agents generate CMAs for their sellers, and buyer’s agents create them for their buyers so bothsides know what current market conditions are for the homes they’re interested in comparing.
How accurate are CMAs?
The CMA is a here-and-now snapshot of the market, based on the most recent data available, but it caninstantly be rendered obsolete by a new listing, or a change of status in a home with the same criteria.Why? The market is constantly changing – new listings, pending sales, closed sales, price reductions,and expired listings.
CMAs can vary widely, depending on the knowledge and skill of the person inputting the searchparameters to the software as well as the number and type of data fields that are chosen. That meanssome features may not be included.
As informative as the CMA is, it should only be used as a tool and should not substitute for your realestate professional’s knowledge and advice.
Author:Sherry Cabrera Phone: 214-454-6969 Dated: February 9th 2016 Views: 847 About Sherry: Sherry was raised in Mississippi and moved to Dallas 16 years ago with her daughter. Prior to movin...