Comparative Market Analysis
What is it and why do you need it? A Comparative Market Analysis, commonly
referred to as a CMA and or mini CMA, is a report of gathered information
utilized to access the market value of your home today. Completed in
steps, this is not required of you, but is handled by your Chosen Real
Estate Agent.
The Agent will complete a home assessment while gathering the pertinent
information bellow:
- Style of the home – Victorian, Cape Cod, Ranch
- Type of home – Single-Family, Multi-Family
- Year the home was built
- Number of bedroom(s) and bath(s)
- Fireplace(s)
- Lot Sizes
- Heating Type
- Cooling System
- Basement: Partial, Unfinished, Finished
- Exterior Amenities: Swimming Pool, Storage/Outbuilding(s), Garage
- Interior Amenities
- Neighborhood Location
- Overall condition of the home
Upon completion of the home assessment, the next step for the Agent
involves the comparison to other homes within the same vicinity. As the
Agent is not expected to tour each home, as this information is gathered
through the local Multiple Listing Service, a database solely for the
marketing and utilization of Real Estate Brokers and their agents.
Preferably no later than six months prior, a search is completed using
Active and Sold listing(s) reflective upon your homes assessment.
- For instance: If you home was assessed as being a Single-Family Ranch
with 3 bedroom(s) and 2.5 bath(s), 1500 sq. ft. settled over a finished
daylight basement built in 2000 and perched upon an acreage of land, the
agent would complete a search for homes based on this information to
obtain a list of comparable properties and their listing and or selling
price.
Seemingly to be utilized only to benefit the prospective Seller, a
Comparative Market Analysis can also be a useful tool to the prospective
Buyer. When selling a home, it is nice to know what the value of your
property is and what listing price is realistic, but when buying a home,
it is equally nice to know that the asking price is reflective upon
today’s current market.
*Note – A Comparative Market Analysis (CMA) is not an appraisal.
It is an estimate of your Homes Value. An
appraisal is completed only by a licensed Appraiser!
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copyright ©
Michael Feicco 2006
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