Understanding the Significance of a Comparative Market Analysis (CMA)
- Laura Maples
- Feb 26, 2024
- 2 min read
Updated: Oct 7, 2024
A Comparative Market Analysis (CMA) serves as a pivotal tool in the realm of real estate transactions. Before a property is listed for sale or an offer is made, it is imperative for a real estate agent to conduct a CMA.
Essentially, a CMA entails a thorough comparison of the subject property with similar ones that have recently sold. This analysis involves scrutinizing various factors such as the property's age, square footage, roofing condition, construction material, any necessary improvements, repairs, or upgrades, and many more factors. Additionally, the timing of previous sales is taken into account to gauge market trends accurately. Usually, going back to see homes sold in the last 3 or 6 months is the most accurate.
The aim of a CMA is to assist homeowners in determining a competitive listing price that maximizes the value of their property while ensuring a swift sale. An accurate and detailed CMA will also be helpful in negotiating the price of a home you would like to purchase. It is a meticulous process that demands expertise and attention to detail. Some real estate agents opt to enhance their skills by undergoing specialized training, such as becoming certified Pricing Strategy Advisors (PSAs).
The National Association of Realtors recognizes the importance of the PSA certification, which equips agents with advanced capabilities in pricing properties, crafting CMAs, collaborating with appraisers, and addressing clients' concerns regarding home values.
Despite the availability of automated valuation tools like Zestimate by Zillow.com, relying solely on them for pricing decisions can be misleading. Zestimate lacks the personalized assessment that a CMA provides, as it doesn't consider specific property features or recent upgrades. Therefore, it is advisable for homeowners to seek the expertise of a certified real estate professional to conduct a comprehensive analysis and offer accurate guidance throughout the selling or buying process.
Laura Maples, a certified Pricing Strategy Advisor, stands ready to assist homeowners in obtaining a detailed CMA and determining an optimal listing price for their property or to assist in negotiating the best price on your next home purchase.
Contact us today for a thorough evaluation and expert advice tailored to your real estate needs.
Laura and Ryan Maples
The Maples Group
772-783-2585
Start your CMA journey with SISF’s renowned US-CMA coaching. Access expert tutors, flexible classes, and in-depth study materials.