The acronym CMA stands for Comparative Market Analysis. This is a report that is done by Realtor’s for seller’s and buyer’s too. The CMA for a seller will provide vital information as to how they should price their home for sale to be competitive in the current market and get the highest possible price. This report can also be used by buyer’s to view current pricing and related information on other comparable homes for sale before they make their offer.
The CMA will display the Active homes, which shows the current homes for sale that are the seller’s competition.
A CMA will also show homes that are Pending or under contract. This is also helpful information to have for although you may not yet know what price was offered for these homes it will show you the prices that did stimulate interest.
The CMA may also contain recent Expired listings. These are the homes that did not sell during the time they were listed. There are many reasons for a listing to expire, the most common being, it was overpriced. When a home comes onto the market overpriced, they will often have a difficult time catching up with the market, will then languish and remain unsold.
Finally, a CMA will contain homes that are comparable or similar to the subject property that have SOLD recently. How many days they were on the market? What was the list price and what was the selling price? There is also other helpful information, comparisons and stats provided.
Now having all this information provided buyer’s and seller’s can make good informed decisions. For seller’s, what will be a strong price for them to list at, providing strong market demand and highest possible price? For buyer’s how much money are they willing to pay and still bring a good solid offer the seller will consider?
The CMA is beneficial and vital tool for both buyer’s and seller’s alike.