If you’ve ever wondered how the listing price for a house is determined, or how real estate agent checks the value of a home, the answer is performing a comparative market analysis (CMA). So what is CMA?
CMA is comparing current listed properties to similar, previously sold properties and making adjustments depending on the features of the home. Choosing the best comparable homes is an important part of the process and results can vary from agent to agent, which is why numbers can change from listing to listing.
Choosing Comparison Homes
There are many things that can play into a CMA and the homes that an agent will choose to compare. When the property sold is an important factor, because today’s market is fast-moving and ever-changing. Something that sold more than two or three months previously wouldn’t be the best fit.
The characteristics of the home make a difference as well. This is a large list from square footage, number of bedrooms, and amenities like garages, fenced in yards, or finished basements.
The location of the houses should be similar as well. A home from an upscale neighborhood is going to go for more than one from a neighborhood with a high crime rate.
It’s important for the homes to be as similar as possible in order to make the most accurate analysis.
Real Estate CMA Software
Real estate CMA software is a great way to make listing CMA reports more accurate and faster. It’s a great way to boost productivity. It helps agents create attractive and data-filled listings that will interest buyers and make a great first impression.
This software is a crucial part of working with CMA, because an agent’s final listing is what determines the amount of success they will attract. That is their first impression with a potential buyer.
The Importance of CMA
CMA is important, because it ensures that houses are listed for fair prices. It gives agents guidelines to follow so that they can offer their clients the best of the best. CMA helps keep the housing market controlled and stops agents who might want to take advantage of buyers from doing so. It’s a great checks and balances system for the world of real estate.