"CMA" stands for comparative market analysis. This service can be prepared by licensed real estate agents, and it commonly used to price a home for sale.
How it works:
An agent gathers and analyzes property characteristics of homes currently for sale, homes recently sold, and listed homes that did not sell. These demonstrate what buyers actually pay in the marketplace, what owners of similar properties are asking, and the resistance level of buyers to overpriced listings, respectively. A CMA compares the subject property (property being appraised) and comparable properties--similar properties in the same market area that can be used to help estimate the value of the subject property. Agents adjust for differences between the subject property and each comparable property. Adjustments are always made to the comparable property. Adjustments are subtracted from the comparable property if the comparable is bigger or better, and added if the comparable is smaller or less desirable. Finally, the values given to each property are reconcilled. The property most similar to the subject will be most heavily weighted.
Example:
If a comparable property has one more bedroom than the subject, and a bedroom is valued at $10,000, then $10,000 will be deducted from the comparable property. Note: it may have cost more or less than $10,000 to build this room--a CMA considers value (what buyers and sellers believe a certain feature to be worth) rather than cost. This is illustrated when homeowners build pools: they often spend more on the pool than they can resonably expect to get out of it in resale. The value of the pool is, therefore, less than its cost.
What it will cost you:
Nothing. I provide free, no obligation consultations to help you know what will help your home sell quickly and for the most money. Call, text, or email me to set a convenient time to meet.
JackCurtis@kw.com / 614-893-8337.
Visit my website here.
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