When you’re selling your home, one of the most important things to know is how much it’s worth. Your REALTOR® will help you determine that with a comparative market analysis, or CMA. This guide explains what a CMA is and how it’s used to find a home’s value.
What is a CMA?
You may have heard the term CMA before, but you may not be exactly sure what it means. A CMA is an estimate of a home’s value based on recent sales of similar homes in the area. This analysis is performed by your REALTOR® before listing your home to help determine an appropriate asking price.
How is a CMA Used to Find a Home’s Value?
Your REALTOR will start by looking at recent sales of similar homes in your neighborhood. This gives them an idea of what buyers are willing to pay for a home like yours. They’ll also look at homes that are currently for sale and homes that have been taken off the market without selling. This helps them understand what buyers are looking for and what they’re not finding in current listings.
From there, your REALTOR will adjust the prices of these comparable homes based on differences like square footage, lot size, age, condition, and number of bedrooms and bathrooms. This process is called “making adjustments.” The final step is to come up with a range of values that your home is likely to sell for.
Related: 5 secrets that can help you get higher offers on your home
What Factors Does a REALTOR Consider When Calculating a Home’s Value?
There are a few different factors that your REALTOR will consider when calculating your home’s value. These include:
- The location of your home
- The size and layout of your home
- The condition of your home
- The age of your home
- Recent trends in the housing market
Your REALTOR will also take into account any special features or amenities that your home has to offer. For example, if you have a swimming pool or a finished basement, these things could increase the value of your home. On the other hand, if your home is in need of repairs or updates, this could decrease the value.
How Do You Get a Comparative Market Analysis for Your Home?
If you’re thinking about selling your home, the first step is to contact a REALTOR®. They will be able to provide you with a CMA for your home.
Related: 5 common real estate contingencies
What Should You Do if the Results of the CMA Aren’t What You Expected?
If the results of your CMA are lower than you had hoped, don’t worry. There are a few things you can do to increase the value of your home before putting it on the market. These include:
- Making repairs or updates to your home
- Decluttering and staging your home
- Pricing your home correctly
If you’re not sure how to increase the value of your home, your REALTOR will be able to give you some tips and advice.
Find Out How Much Your Home is Worth Now
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