COMPARATIVE MARKET ANALYSIS
A Comparative Market Analysis, or CMA, is a REALTOR’s® opinion as to the value of a house in the market place. Ultimately, the value of a house will be set by the buyer’s offer and the seller’s acceptance, but the well analyzed CMA will give a seller a good idea of how much a buyer will likely spend for his or her house. The agent determines this value by looking at prices buyers have recently paid for houses similar to yours in the neighborhood.
The preparation of a good CMA is not a science with a formula into which the agent simply plugs numbers. It is an art based on years of experience and a thorough knowledge of the dynamics of property sales in a specific neighborhood. An agent is required to make judgments based on the Multiple Listing Data he collects and the agent’s market expertise in a given neighborhood. On-line, computerized CMA’s, although, perhaps reasonable as a starting point, usually have a margin of error of (+/-) 7.5% to start and at times have shown to be over or under value by much as 20-30% or more. You may be tempted to rely on the value of your property as set by these sites, but the truth is they have no way to analyze the quality of your improvements or the specific amenities that affect the price of your property.
A far more accurate estimate of the value of your property can be made by a real estate agent that “Specializes” in selling houses in a specific neighborhood. The key word here is “specializes” because an agent’s experience and familiarity with a specific neighborhood can also affect the accuracy of the CMA. As “The Neighborhood Specialist,” I welcome your call for a Comparative Market Analysis for your house, at 214.641.7001, or email me at firstname.lastname@example.org.
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