Comparative Market Analysis (CMA) is key mechanism used by real estate agents to attract seller business, and generate profits on the property market. The CMA is a reporting instrument designed to establish a listing price range on a home or commercial property.
The Difference between CMA and Mortgage Loan Appraisal
CMA valuation is performed by an agent on behalf of a property seller to market a real estate asset. The presentation of a CMA report is often the deciding factor in selection of listing agent. The measure of a property’s worth is in CMA is distinct from other appraisal methods used by lenders. The CMA presentation is a comparison of properties in a neighborhood or city, targeting a reasonable price in preparation for listing.
The proper CMA price will be near that of a mortgage loan appraisal value. The CMA is also used in second mortgage loan refinance consideration. Value derivation from CMA supports an owners request for equity, cash out, rehabilitation, or payment restructuring to reduce both interest and principal payments.
Preparation of the CMA Report
When a real estate agent prepares a CMA presentation, they are targeting a listing price for market performance. Estimation of a listing price in CMA is spread over a range of pricing, informed by similar active, pending, sold, or expired listings.
The CMA’s pricing continuum does not reflect fixed asset value. Price calibration is essentially the main goal of a CMA report, yet agent presentations also include details about the property to be listed, as well as market figures and valuation of nearby properties involved in the pricing estimate.
Multiple Listing System (MLS) and county title records are source to the CMA analysis. Data extracted from aggregate indices assists in refining the pricing structure of a property. The most thorough CMA presentations include other variables.
Selection of an Agent
Real estate agent selection is based on CMA presentation submission enables a property owner to assess the expertise and precision of a property listing price estimate. The CMA is a key tool for selection of a listing agent.
CMA reporting offers would be buyers a reference for determining the comparative value of a property in relation to other offerings in the area. If an agent has included more than three property valuations in estimation of a new listing price, chances are that both the seller and the buyer will be satisfied with the transaction.
Review of real estate agent’ CMA presentation is a recommended technique for selling a property. Property owners that have a positive response to a CMA presentation they are seeing for the first time, are not dissimilar to buyers. Agent expertise in CMA is the best method of marketing a property listing.
CMA Benefits for Property Owners
Raleigh, NC home sellers will find that CMA is the single most important presentation of a property aside from onsite review. Portable, insightful, and proven as a vehicle for maximizing real estate sales, the CMA presentation is nothing short of competitive advantage. For more information on selling your home, please don’t hesitate to contact us!