What is a CMA and why do you need one for your home?

CMA stands for Comparative Market Analysis and is the best tool to estimate a value for your property by using comparable sales in your neighbourhood. So if you are buying, selling or refinancing your home’s dollar value is an important number to know.

As a Seller a CMA will help you determine a correct asking price, an idea of length of time on the market and your competition if any. As a Buyer a CMA will help you determine an offer price, and if the home will appraise for financing.

What you look for in a CMA is a picture of your local market. It will include current listings, sales and expired. Current listings are your “competition”. The sales represent the most recent activities and give you a benchmark of your current price. The expired listing are listings that did not sell during its listing period. This will give you an idea what is too much as an asking price. Analysing these numbers will help you avoid the dangers of overpricing your home.

Keep in mind that estimating the sales price of your home through a CMA involves a certain amount of market knowledge, current sales and some guesswork. CMA’s are snapshot in time so it will change. Remember that a CMA is not an appraisal.

Advertisements
Categories Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close