When it comes to real estate, CMAs are not the Country Music Awards. Within the industry, this acronym refers to a Comparative Market Analysis. CMAs are very important to understand for anybody buying or selling a home. Below, we will go through what you should know about a CMA.
Defining a Comparative Market Analysis (CMA)
A CMA looks at the prices of similar properties that have recently sold in the area and compares those properties to the one currently for sale. Real estate agents use CMAs to help clients determine the right price to list their home for sale or to help figure out what they should offer for a home they want to buy.
While CMAs are very useful, the properties used for the comparison won’t be the same; adjustments will be made for the differences. In the simplest terms, CMAs are a less in-depth and more informal version of an appraisal.
How are CMAs Helpful to Buyers and Sellers?
Both buyers and sellers can use CMAs to their advantage. For sellers, CMAs help to determine the right listing price when selling a property. This is a vital part of the selling process. If the price is set too high, it could scare potential buyers, while a price set too low may bring up questions about what’s wrong with the property.
For buyers, CMAs help to determine the right amount to submit when it comes to your offer. You want to make a fair offer and with a CMA from your real estate agent, you’ll be able to settle on the right price for your offer.
Are CMAs 100% Accurate?
In short, no, CMAs are not 100% accurate. They are meant to be used as a tool, not as the official appraisal of the property. However, when you choose a good real estate agent, they will perform a good CMA to help with buying or selling your property. Some real estate agents are better at doing CMAs than others and some go further into depth. You can count on us at 1 st Choice Properties to do a very thorough CMA for you.
Overall, using a comparative market analysis when buying or selling a property makes a big difference.
It’s a great tool to ensure you list your home for the right selling price or you submit an offer more likely to be accepted. When choosing the right real estate agent, make sure your agent knows how to perform a good CMA.
Should you elect to work with me, I will work tirelessly to ensure your real estate goals become a reality.
At 1st Choice Properties we provide local real estate market expertise and guidance that is second to none.
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