Comparative Market Analysis or CMA
What is a CMA?
A Comparative Market Analysis, or CMA, is a thorough analysis that evaluates current market trends to determine your home’s value.
Rather than producing a computer-generated number, at Liz Moore and Associates we have designed a 10 step pricing methodology to determine a home’s market value. Put simply, market value is what a buyer is willing to pay and what a lender is willing to lend – whichever is lower. So it’s important to analyze value from all aspects, not just from one point of view:
- Odds of Selling – Analyzing statistics including months’ supply of inventory, absorption rates, and where to position your home to be the best value in its category.
- Create a Positioning Strategy – Putting on a buyers’ hat, compare listings in direct competition with yours. Keep in mind that not all competition is comparable!
- Identify Target Buyer Profiles – Who will be buying your home? A military family? A retired couple?
- Adjustments – Comparing your home to others by highlighting the best features and weighing the challenges.
- Will it Appraise? – Appraisers approach value much differently than buyers. Buyers are looking at current/active listings while appraisers focus on homes that have sold in the past 3-6 months. This is an important step, since this will affect how much a lender is willing to lend to the buyer.
- Condition Assessment – Determining property condition and how move-in ready it is. If needed, consider painting, repairs, or updating.
- Staging Consultation – Recent trends have suggested that staged homes sell faster and for money.
- Benchmarking Assessed Value – Comparing tax assessments for neighborhood appreciation or depreciation trends and ratios of sold prices to assessed value.
- Benchmarking Price per Square Foot – How does the price per square foot compare to other active listings?
- Forecasting – Continuing to study our dynamic market to stay updated with changes and how it affects current value.
Hampton Roads Real-e-statement is written by Alyssa Godwin, a Realtor with Liz Moore and Associates. For questions regarding buying or selling contact Alyssa at 757-329-6161 or email@example.com. You can also find Alyssa on Facebook or on the web at www.lizmoore.com/alyssagodwin.