It’s TRUE! The market is heating up! If you were waiting to put your property on the market, start to get ready. In the last post we talked about Staging, which is a good cornerstone for a home to quickly sell. Now I want to walk you through the process of Comparative Market Analysis, also known as CMA. Big title, big decision in your process. To simplify – a CMA is a report used by real estate agents to determine the value at which your property should sell. It involves researching your neighborhood for properties that are:
- Active listings: homes in the area that are currently on the market.
- Pending sales: homes in the area where a sale is pending.
- Recently sold: usually within the last six months.
- Distressed properties in the area.
- Expired listings: expired without being sold.
It will include all the properties’ data, such as number of bedrooms, bathrooms , square footage and year built. Pictures of the property, asking prices, the proximity of the house for sale to your property are also included in the report.
A completed CMA will provide useful information such as Tax and Assessment History; Mortgage history; sales and financing activity and prices/sales history.
With all the information in place the agent compares the high and low values of homes in various listing statuses to help determine the asking price for the subject property. The report also provides a Sellers Proceeds which allows the agent to input estimates of what the seller might make on a sale!