Distinct from mortgage loan appraisal, your Comparative Market Analysis (CMA) uses an econometric approach to decide the value of real estate assets. Performed by property agents, the CMA is an essential tool used to estimate the listing price of a property sale. Instrumentation of CMA methods enables an agent to calculate a price range according to the current market. Other factors such as regional prices on houses or commercial property will inform the outcome.
How Your CMA Works
The CMA price range is the publicly viewed value of a listing. Buyers respond to CMA valuation, as it offers insight into a property’s all around worth. The ranging effect of CMA pricing allows for modification of a price at time of offer. Rather than assign a fixed price to a property listing, and agent and seller can agree upon a range price to induce more buyer interest.
Property agents acknowledge that the most competitive real estate pricing is found in CMA reporting. Reflecting aggregate median housing prices, as well as other variables involved in the valuation of a property asset, CMA calibrates a listing price according to tiered value. Price estimates published in CMA presentation are also used in support of second mortgage loan application review.
Preparation of the CMA Report
CMA presentation begins with estimation of a property in comparison with other listings in an area. The preparation of the CMA report by a real estate agent also sets the pace for the near future agreement to price on a listing by the seller.
The collection of data to meet CMA reporting requirements from county public records and the Multiple Listing System (MLS) ensures that a price estimation is in line with the market. Comparison of individual listings in a neighborhood or city serves to narrow the valuation of a new property offering.
Other data included in the CMA analysis may affect price scale. Reference to active, pending, recently sold, and expired listings in CMA reporting is common. A real estate agent may choose to increase the accuracy of the price range to a future property listing through incorporation of pricing data in the analysis.
CMA Benefits for Property Owners
Seattle and Bellingham, WA property sales are enhanced with CMA reporting. Property owners increase the performance of real estate listings with Comparative Market Analysis because it is a more accurate price valuation since it takes so many factors into consideration. Choosing the right real estate agent is vital to this process since they will complete your CMA. This is usually the first step in the selling process and should be taken seriously by a knowledgeable agent who can add their own input to the report. For more information on selling your home or having a CMA completed, please don’t hesitate to contact us.