Michelle put together a very details explanation of what a CMA is and why its important. A few sellers will still feel their house is worth more (and it is... to them). But the CMA is going to paint the picture of what the market is like in that neighborhood. A good agent shares this information with the client... a GREAT agent gets the client to understand the report and understand the important of selling a home at the right price.
What is a CMA?
CMA stands for Comparative Market Analysis, which is a report prepared by a real estate agent to determine the market value of a home. CMA's are primarily prepared for sellers, but I also prepare them for buyers prior to writing an offer.
A CMA will contain homes similar to the subject property that have recently sold. If necessary, adjustments will be made for feature differences such as an additional bathroom or swimming pool.
A CMA will also contain Active Homes for Sale to show the current competition. When reviewing these homes it is important to understand that a seller can ask any amount they want for their home, but it doesn't mean a buyer is going to pay that amount.
Along with Active Homes and Recent Sales a CMA will also include Homes Under Contract. While we don't know what these homes will ultimately sell for, it does show us asking prices that did solicit offers.
The last thing a CMA may include are Expired Listings, which are the homes that did not sell during their listing period. There are several reasons a home may not have sold during the listing period, it could have been over priced, had ineffective marketing or horrible curb appeal, the list goes on and on.
Based on all of this information a price range will be established and the seller will choose their asking price, but ultimately a buyer will dictate what a home is worth.
If you are interested in receiving a free CMA contact us today or fill out our online What is My Home Worth? form.
Originally posted at http://wellingtonhometeam.com/what-is-a-cma/
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