What is the Current Value of My Home
A Comparative Market Analysis (CMA) is a report prepared by a real estate agent to determine the fair market value of a home. It involves analyzing similar recently sold homes (comparables or "comps") in the area to estimate the subject property's value. Here’s how the process works:
1. Gathering Data on the Subject Property
The agent collects key details about the home, including:
Location (neighborhood, school district, proximity to amenities)
Square footage and lot size
Number of bedrooms and bathrooms
Condition, age, and upgrades (e.g., remodeled kitchen, new roof)
Unique features (pool, finished basement, waterfront, etc.)
2. Selecting Comparable Properties
The agent looks for recently sold homes (typically within the last 3-6 months) that are similar in:
Location (preferably within the same neighborhood or a similar area)
Size (within about 10-20% of the square footage)
Age and condition
Features and upgrades
The agent may also consider active listings (homes currently for sale) and expired listings (homes that did not sell, often due to overpricing).
3. Adjusting for Differences
Since no two homes are exactly alike, the agent adjusts for variations in key features. For example:
If a comp has a renovated kitchen but the subject home does not, the agent deducts an estimated value from the comp’s price.
If the subject home has an extra bathroom compared to a comp, the agent adds value.
Factors like a larger lot, garage spaces, or a superior view also influence adjustments.
4. Determining the Price Range
Based on the adjusted comps, the agent provides a price range rather than a single number. This range considers:
Recent market trends (is it a buyer’s or seller’s market?)
Demand and supply conditions in the area
The average price per square foot of comparable homes
5. Presenting the CMA Report
The agent compiles the findings into a detailed CMA report, which typically includes:
A list of comparable properties with sale prices and details
Adjusted values reflecting differences
Market trends and analysis
A suggested listing price or fair market value
6. Advising the Seller or Buyer
For sellers: The agent recommends a competitive listing price to attract buyers while maximizing value.
For buyers: The agent helps determine if a home is fairly priced and negotiates accordingly.
A CMA is not an official appraisal, but it is a critical tool for setting a realistic home price based on market conditions.
Contact Allen Deaver for a Free-No Obligation Comparative Market Analysis
