Do You Know the Value of Your Home?

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Do you know the value of your home? What is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is an in-depth and detailed document, prepared by a real estate professional, which is used to aid in determining a fair price to list a home for when selling, or a fair price to offer when purchasing a home or piece of property. A Comparative Market Analysis (CMA) can consist of information on properties including: recently sold properties, properties that are currently on the market that would be considered competition for said property, and recently expired listings or properties that did not sell. Read further for more information on which details most standard CMA reports contain. It is important to know that a CMA is NOT an official appraisal.

Just like properties and homes differ from one another, CMA reports can vary in size, number of pages, number of homes or properties in the comparison, and the size of the area in which comparables are selected from. Depending on the market, the time frame in which data is selected from can vary as well. A good Realtor or Real Estate Agent will be knowledgeable about the current market and will be comprehensive in using the right data in preparing each individual CMA.

The following is a list of data typically included within a standard Comparative Market Analysis:

Recently Sold Listings: Comparable sales will the selected from homes that have closed within the time frame best for the market conditions in the area of the subject property.
Pending Listing: A home or property that is listed as having a pending status is considered to be under-contract, and pending a successful closing. Because these listings have not yet closed, they are not yet considered as a comparable sale, however, the data from these listings can aid in a better understanding of the current market within the selected area.
Active Listings: These listings are homes or properties that are currently on the market and for sale within the selected area for the Comparative Market Analysis. Because these homes or properties have not yet sold, the data from these listings can only provide an idea of current competition and market. They cannot realistically be used to determine value because any home or property can be listed for any price.
Expired, Withdrawn, and Cancelled Listings: These are homes or properties that either did not sell within the time of the listing agreement (expired), or homes or properties that were taken off the market for what could be a variety of reasons. There are endless reasons that could lead to a home or property being taken off the market, some examples include: seller’s remorse, an unexpected negative home inspection or repair requests, change in life plans, etc. If there are a number of expired listings similar to the subject property that are priced above average, this may lead to the conclusion that these homes or properties were over-priced and did not sell.

The homes or properties on the report that resemble the subject property the most will provide the best data for comparable sales. This should include data on homes or properties that are identical in acreage, size, shape, condition, etc.

Some details to take note of should include:

Similar square footage
Amenities and Upgrades
Age of Construction
Location
Acreage

Again, the data contained within a Comparative Market Analysis (CMA) will provide a basis for the value expected for a home or property and can aid in deciding the price to ask when selling or a fair price to offer when wanting to purchase said home or property. There are many other factors to include when determining the market value of your home, including: condition, upgrades within the home, whether or not the home has a finished or unfinished basement, etc.

If you would like to receive a free Comparative Market Analysis (CMA) for your home or property CLICK HERE.

Don’t let stress and anxiety overwhelm you when it comes to the pre-approval, mortgage, and home buying process. Contact a local REALTOR to guide you through the process. It can be a fun and exciting time with the appropriate knowledge and representation by your side. If you are looking to purchase property or a home in Northeast Georgia send me an e-mail today. As a licensed REALTOR for Keller Williams, Lanier Partners, I will be happy to assist in any way that I can.

Be sure to check out:
11 Benefits of Hiring a Listing Agent to Sell Your Home
10 Benefits of Obtaining a Mortgage Pre-Approval

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