Whether buying or selling knowing how similar homes are priced that are actively listed and recently sold is key to knowing how your home would fare when listed and what your offer price should be when buying.

WHAT’S A CMA?  

It is very important that a Realtor perform a comparative market analysis.  This is a report that analyzes the prices of similar properties in the same area.  A comparative market analysis is also known as a CMA. Think of a CMA as fact-based portrait of the home including information such as the number of bedrooms and baths, the square footage, age of the home, and desirable amenities such as fireplaces and pools.

EFFECTIVE CMA

A comparative market analysis is an examination of homes that most closely resemble each other. Comparing a 2 story to a 1 story with a pool is not a very good comparison. 

Homes that are homes currently on the market for sale are ACTIVE Listings.  These matter to a seller because this is direct competition for buyers. Buyers looking at your home will most likely be looking at these properties as well. It is important to note that listing price does not necessarily reflect market value because sellers can set a listing price, but that usually does not end up being the sales price.

Homes under contract are PENDING listings. They have not yet closed.  A listing agent almost never discloses the price of the pending sale until the transaction closes.  However, a pending sale does suggest the direction the market is moving.

A CMA must include SOLD listings.  Homes that have closed in the last 90 – 180 days are comparable sales.  Sold listings are a very good indicator of market value.  This shows what a buyer is willing to pay for a property like yours. Pay close attention to the SOLD price! 

BEYOND THE CMA

Finding good comparable properties is essential to a good solid CMA that will help when deciding on the listing price of your home or how much to offer on a home you are wanting to buy. Beyond the CMA is the “art” of the sale that is more than the data and details and statistics.  A home may be the same in the data but once inside the home, perhaps it doesn’t have an easily flowing floorplan or the layout of the kitchen is cumbersome or the location in the subdivision is less than ideal.  How a property makes a buyer feel when they walk in the door plays into how much they are willing to spend to buy it. 

IN CONCLUSION

Do not buy or sell without a CMA in hand.  Any good Realtor should be able to provide an effective market analysis.  This is the first part in determining price.  Looking beyond to other factors not reflected in the CMA is the second part and together with your Realtor you can conclude on what to list your house for or what the offer should be! If you are curious about what your home would sell for I would be honored to compile a CMA for you.

Call or Text:  832-621-6870 Email: Krystal@StanfieldProperties.com