When a homeowner places a property on the market for sale, the listing price is almost always a direct result of a Comparative Market Analysis (CMA). The CMA is used to establish a listing price, and promote the sale of a property on a competitive market. CMA reporting is conducted by a real estate agent in the interest of capturing a new seller client’s business. Different from mortgage loan appraisal, CMA valuation offers a more flexible interpretation of resale price on a property based on a number of factors.
The CMA compiles information about a property, its location, size, age, and amenities, as well as comparable market price. CMA prices tend to be about the same as a mortgage loan appraisal. CMA pricing is based on a range or continuum of value, rather than fixed asset value. Active, pending, sold, and expired listings are compared in estimating a property price. As always, an experienced agent who knows your area will be able to prepare a CMA report and add their own educated opinion on the market and the area.
Preparation of the CMA Report
The comparison of information from county land title record and the Multiple Listing System (MLS) offers foundation to the calculation of CMA pricing. When a property agent conducts a CMA analysis, they may also include a number of other relevant factors leading to price variance.
The computation of CMA listing price is met by comparison of similar properties on a market, as well as median housing prices regionally to ensure that an estimation is the right price for resale. Some real estate agents offer their clients several property comparisons in order to truly understand the correct pricing in the area. Such an effective use of a CMA reporting shows that an agent is highly skilled at pricing of property listings.
Selection of an Agent
Selection of an agent on review of CMA presentations is a common method used by property owners seeking the best possible representation for their home or commercial real estate transaction. The CMA is a widely accepted indicator of property values and a good way to get to know your potential agent and their knowledge of your area. If you would like us to prepare a CMA report for your property, give us a call and one of our agents can schedule an appointment!
CMA Benefits for Property Owners
Anchorage homeowners derive a number of benefits from CMA reporting. In addition to property resale listing, real estate owners can use the CMA to increase refinancing capacity. Present a CMA to a lender for full consideration on a loan.
Properties backed by CMA are recognized as appraised assets. For commercial property owners, CMA is an essential instrument for marketing a real estate listing. MA reporting verifies that a property is a better value than other listings. For more information on selling your home or acquiring a Comparative Market Analysis, please don’t hesitate to contact us!