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Free Home Valuation (CMA)
As a complimentary service for our clients, Real Estate Direct offers Comparative Market Analyses (CMA).
What is a Comparative Market Analysis (CMA)?
A CMA is an value estimate based on the values of similar homes in the area. Real estate agents are especially trained to conduct CMAs for their clients to assist with most real estate transactions. A CMA is a value estimate that is often more reliable than many property sites, such as Zillow, because the agent will often be able to access more information than the software used on those sites and are able to incorporate a “human factor” into the valuation such as an in-depth understanding of the market conditions in the area.
When should I get a CMA?
A Comparative Market Analysis can help just about anyone conducting real estate.
- As a seller, you will get a better idea of the value of your home and therefore a more ideal listing price.
- As a buyer, your Real Estate Direct agent will provide you with a CMA to help determine an appropriate offer price.
- A CMA can also help real estate investors determine whether the market is right for listing a property for sale.
- Comparative Market Analyses are helpful for landlords and even tenants to determine the appropriate rental rates for a given area.
How does a CMA work?
Your agent will take a sampling of similar homes in the area of the subject property and “compare” them. If a similar property has an amenity that the subject (your) property does not, they will decrease its value for the perceived value benefit to that property. If housing prices have risen in the area since it sold, then adjustments will be made to compensate. Once on equal standing, the average of all of the compared properties will help the agent determine an appropriate value for the property in question.
What is the difference between a CMA and an Appraisal?
A Comparative Market Analysis is often confused as an appraisal. There are several important differences:
An appraisal can only be completed by a qualified appraiser and is an extremely thorough (and often more expensive) valuation of a property’s potential value based on several factors. An appraisal is often relied upon by lenders to determine how much they are willing to lend on a specific property.
A CMA is similar to an appraisal in that it helps get an estimate of the property’s value and can only be conducted by qualified individuals, but they differ in that much fewer people are qualified to complete appraisals than CMAs, and that CMAs often cost significantly less (or, in our case, are free to our clients)!