No two homes are exactly identical, which is why determining a sales price or offer price for a home can be challenging. That’s where the comparable market analysis, or CMA, can be useful.
What is a CMA?
The CMA is a side-by-side comparison of similar homes for sale and homes that have recently sold in and around the same neighborhood and price range. This information is further sorted by data fields such as single-family or condo, number of bedrooms, number of baths, postal codes, and many other factors. Its purpose is to show your home's fair market value, based on what other buyers and sellers have determined through past sales, pending sales and homes recently put on the market.
How is the CMA created?
CMAs are generated by a computer program supplied by your real estate agent’s multiple listing service (MLS). The MLS is available to licensed members only, including brokers, salespeople, and appraisers, who pay dues to gain access to the service’s public and proprietary data, including tax roll information, sold transactions, and listings input by all cooperating MLS members.
How accurate are CMAs?
The CMA is a here-and-now snapshot of the market, based on the most recent and most accurate data available, but it can instantly be rendered obsolete by a new listing, or a change of status in a home with the same criteria. Why? The market is constantly changing – new listings, pending sales, closed sales, price reductions, and expired listings.
CMAs can vary widely, depending on the knowledge and skill of the person inputting the search parameters to the software as well as the number and type of data fields that are chosen. That means some features may not be included.
Which is better .. a CMA or any online automated valuation tool?
CMA's are superior to any online automated valuation tool. Take Zillow for instance, you may be surprised to find out that over 50% of their Zestimates® are more than 20% inaccurate. ..See More
As informative as the CMA is, it should only be used as a tool and should never substitute for your real estate professional’s knowledge and advice.
Dan Lopez | Legends Realty | 290 Waymont Ct., ste 100 Lake Mary, FL 32746 | danlopez@legendsre.com | Mobile: 407-705-3915 | www.HomesInCentralFL.com
