What is a (CMA) comparative market analysis?
A Comparative Market Analysis (CMA) is an evaluation of recent sales of similar homes, ideally in the same neighborhood, as the home being purchased or sold. Sales in the last six months are given the most weight. A CMA is intended to determine a current market price range as a guide for establishing an offer or a listing price.
A CMA involves finding homes similar to the one under consideration and creating a comparison of its size, age, location and features. It all comes down to: compared to other, comparable homes in this area, how much is this home worth? Answering that question involves looking at a fair amount of data on other homes in the current market.
The process for doing a comparative market analysis includes:
Defining criteria for selecting comparables in close range to the home
- Determine a list of quality comparables
- Evaluate the comparables within close range to the home
- Adjust comparable values for differences in size, condition, location, amenities, etc
- Estimate the ideal value of your target home based off the findings