In the current market, there are a number of home valuation models used to find the value of a property. No method is more used by real estate agents that Comparative Market Analysis (CMA). CMA pricing structures are actually a ranging representation of property value. The use of CMA by real estate agents in determining market listing price allows for some modification of a property value at time of negotiation. Comparison of sold, active, pending, sold, and expired property listings in a CMA analysis affords a broad interpretation of the potential selling price of your home.
In terms of pricing instruments, the CMA is a range approach to establishing value. When an agent researches competitive market pricing, CMA dictate integration of aggregate median housing price indices, as well as targeted properties in the local market in the formulation of price. Buyers are most attracted to a listing that appears to offer accelerated return on investment. If a property is reasonably priced, and more competitive than other similar properties in the area, a seller can increase the chances that a property will be sold in short time.
Preparation of the CMA Report
The CMA presentation is the result of real estate agent preparation of a pricing structure in line with a property and surrounding market. CMA reporting is data driven. Collection of information about the market from the Multiple Listing System (MLS), as well as county property title records, and other resources, all contributing to an accurate assessment. Valuation of similar properties currently listed narrows CMA price estimation, so that a listing conforms to the expectations of the local market.
Selection of an Agent
The selection of a property agent begins with the CMA presentation submission. Real estate agent expertise will define the near future performance of a property listing so it is important to use this as an opportunity to make sure your agent is well educated in the area. Your real estate agent should have proven success in your area along with an in-depth knowledge of the specific neighborhood you live in. For more information on our expert local agents, please read about them here.
CMA Benefits for Property Owners
If you are looking to sell your home, then garnering a CMA is a natural progression of the home selling process. They are also important in several other situations such as in support of a second mortgage application. For more information on obtaining a CMA for your property, please don’t hesitate to contact us.