A comparative market analysis (CMA) is one of the most important considerations in any real estate transaction. It not only benefits both the buyer and seller, but a properly performed CMA is a critical step in establishing price versus value. Here is what you need to know about a CMA before buying or selling a home:
How It Works
A CMA is typically done by a real estate agent with extensive experience in the property type and location. A careful evaluation of the parcel is done to assess the condition, amenities and unique status of the specific property in comparison with others in the same vicinity. To obtain the best CMA, it is necessary to work with a qualified real estate professional who knows and understands the location.
How It Benefits the Buyer
A CMA helps the buyer differentiate unique aspects of the property so it can be compared with other potential properties in the immediate area. By weighing price, amenities, location and other variables, the buyer is more informed and able to support fiscal and other factors involved in the purchase.
How It Benefits the Seller
An important aspect of selling a property is the ability to price it right. A CMA alerts sellers to comparable properties and helps set an entry price point. Aggressive or highly motivated sellers would want to list their homes at the lower end of the spectrum, while others may take a more leisurely approach by pricing at the higher end but appealing to specific amenities.