Why All Sellers Need a Comparative Market Analysis
When selling a home, all sellers should get a comparative market analysis (CMA) from their real estate agent. This report will help you determine the local real estate market as well as a good idea for an asking price based on recently sold homes in your area with similar amenities.
Here are some things you should understand about a CMA and three advantages sellers have when getting one before listing their home.
What Is a Comparative Market Analysis
A CMA is a report put together by your real estate agent. This report contains things such as:
- Current listings
- Pending listings
- Sold listings
- Off-market data
- Local market information
- Average number of days on the market
The agent will get this information from the Multiple Listing System (MLS), as well as county title records. Additionally, they will use their knowledge of the area to add extra value to the report.
The point of a comparative market analysis is to determine the best listing price for the home so that it will sell quickly and for the most money. Most CMAs provide a range of pricing, and then it is up to the real estate agent and seller to determine the final listing price.
A CMA is not the same thing as a mortgage loan appraisal. The mortgage appraisal is performed by the lender. This will determine how much they are willing to lend on the home. However, a good CMA should provide a home value similar to that of an appraisal.
Now that you understand what a comparative market analysis is, let’s look at why this is something you should have before selling your home. Here are the top three reasons.
Understand the Local Market
The comparative market analysis will help you understand the local market. Because a CMA is limited to specific areas, the information provided is far more valuable than an understanding of the general US market, the Florida market, or even the city or county in which you live. The CMA can be neighborhood specific, which will help you as you sell the home with such things as:
- Amenities that are in demand
- Area highlights to focus on in your listing
- Key issues pushing buyers to purchase in your market
Determine Improvements
By seeing what is selling and what is not, you will get an idea of improvements you may need to make in order for your home to sell quickly and for the most money. Such improvements could include things like:
- Updated kitchen
- New appliances
- Updated bathrooms
- Other amenities popular in your market
Reasonable Home Value
As a seller, you want to sell your home for the most money possible. However, trying to sell it for too much can backfire on you. A comparative market analysis will provide a realistic home value based on recent data.
As your real estate agent, we will provide you with a detailed comparative market analysis to help you sell your home quickly and for the most money. Give us a call today to discuss getting a CMA.