What’s My House Worth?
What is a (CMA) comparative market analysis?
A Comparative Market Analysis (CMA) is an evaluation of similar, recently sold homes (called comparables or “comps”) that are near a home or homes that you want to buy or sell. Buyers, sellers, or real estate agents perform a CMA report to establish and find a fair price range for the subject property. This price range is used as a guide for establishing an offer price or a listing price.
Basically, performing a CMA involves finding the homes that are similar to the home under consideration, and creating an in-depth comparison of its size, age, location, and features of the home. It all comes down to one question: compared to other, comparable homes in this area, how much is this home worth? Answering that question involves looking at a fair amount of data on other homes in the current market.
The process for doing a comparative market analysis requires us to:
Define criteria for selecting comparables in close geographic proximity
Determine a list of quality comparables
Evaluate the comparables within close range to the home
Adjust comparable values for differences in size, condition, location, amenities, etc
Estimate the ideal value of your target home based off the findings