A Comparative Market Analysis, CMA for short, is a way we help determine the value of a home. We compare the property in question to other homes that have sold or are currently for sale.
This is completed before a home is listed for sale or a buyer makes an offer on a home. Please note, comps (a.k.a. comparable homes) have to be repulled every 30 days. With how busy the Real Estate Market is, things change quickly! The factors we take into consideration when determining value. This includes square footage, # of beds/baths, location, features, lot size, etc. We also are only looking in an immediate area. If the home is in a suburban area, we like to stay within 1/2 mile to 1 mile of the property to find comparable homes. The closer the better. In rural areas, we can expand up to 10 miles because of the lack of inventory.
Another thing to consider is what is competing with your home. What is on the market right now? That can help justify the price if your home is superior or inferior to the competition. Also, not all repairs are equal. If you invest $100k into a pool, that does not mean you'll get $100k more in value. That type of improvement is more for personal enjoyment.
Now, a buyer's value and an appraiser's value are two different things. In the market we are in now, some buyers are willing to pay OVER the appraised value. We want to give you both values or a range of the potential sales price based on the two. Also, we are not licensed appraisers and appraisals are a professional opinion. However, our goal is to use our experience to help gauge what an appraiser might say. See below for a blog post all about appraisals.
