The Comparative Market Analysis (CMA) is the instrument used by the real estate sector to establish price valuation of new listings. Real estate agents perform the CMA analysis, and present the results to seller clients. The CMA follows the logic of median price frequencies. A better aggregate measure for accountability of multiple listings in the same city or neighborhood over a period than a mean average, the CMA publishes a price range rather than a fixed price.
Differences in Methods
CMA presentation is also an effective method by which real estate agents attract new clients. Expert CMA reporting distinguishes experienced agents from those just starting out. If a CMA presentation offers comparison of more than three listing valuations, a seller has a better chance of competitive performance in a market.
Distinct in formulation of price than other appraisal methods, such as mortgage loan valuation, the CMA is the best method of attaining a reasonable price on a property for listing. Also applied in second mortgage loan consideration, the CMA affords some flexibility to a loan applicant in support of refinancing.
Preparation of the CMA Report
CMA presentation preparation by a real estate agent incorporates a few different sources of data. The compilation of information about a property, its market, and unique features contributing to the calculation of a listing price is met in tiered valuation. CMA pricing portrays a top and bottom range price.
Information drawn from Multiple Listing System (MLS) and county public records informs the ranging price in CMA. Once aggregate indices have been evaluated, targeted valuation of similar active, pending, closed, or sold listings offers comparison of a property with assets of near equal value.
Selection of an Agent
The selection of a property agent to represent a listing is partly based on CMA presentation effect. If a seller wants the most performance from a listing, the decision to extract as much value for money begins with the selection of an agent’s CMA. Expert real estate agents outperform the competition in terms of precision in price reporting.
The CMA presentation is also the reference most used by potential buyers in the determination of a property target. When buyers make an offer on a property, the most important factor is usually price. The CMA calibrates price range valuation of new listings to the benefit of both the buyer and seller.
Recommendation of a real estate agent by a former client is often result of CMA presentation. The exhibit of CMA presentation is a standard point of reference in property owner decision. CMA reflects an agent’s ability to adequately represent a property listing.
CMA Benefits for Property Owners
Lexington, KY property owners have access to CMA reporting. Request a CMA analysis from a real estate agent prior to sign on. Review of CMA before listing a property is essential to attaining asking price. CMA is also key for refinancing consideration on an existing title. Seek competitive advantage in comparative market analysis.
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