Episode Eight: What is a CMA?
competitive market ANALYSIS:
There are many variables that impact on the value of a home or property. This includes its location, neighborhood, community plan, proximity of amenities, lot size, view, property size, interior and structural condition, construction, age of home, unique features and updates and the state of the local real estate market.
Your real estate agent will prepare a Comparative Market Analysis (CMA) of the subject property you want to buy. Prior to writing the Offer, a client receives information on area sales, local market information and information on whether there are competitive bids.
He or she will study the statistics on the MLS, what has sold in the neighbourhood and on that street over the past number of months, what has expired or been terminated, and what are the new properties on the market right now that are similar in the area. These will then be compared to the house that is on the market right now that you want to buy.
Some properties are priced too high (and take time to sell), some are priced on the market, and others are listed very low to encourage bidding and multiple offers. It is important that the Buyer sits down with the real estate professional to come up with the right number to put on the Offer.