Comparative Market Analysis
A comprehensive report prepared by a real estate agent that analyzes recently sold comparable properties, current active listings, and expired listings to determine an estimated market value for a specific property. The CMA considers factors like location, property size, condition, features, and current market trends to provide pricing guidance.
Example
“Before listing the house, the agent prepared a comparative market analysis showing that similar homes were selling between $450,000 and $480,000.”
Memory Tip
CMA = 'Compare My Area' - agents compare your property to others in your area.
Why It Matters
A well-prepared CMA gives sellers data-driven pricing recommendations that can help their home sell faster and for the best possible price while avoiding the costly mistake of overpricing.
Common Misconception
Some sellers believe a CMA is the same as a formal appraisal, but CMAs are estimates based on market analysis while appraisals are official valuations performed by licensed appraisers.
In Practice
Before listing your home, your agent presents a CMA showing that similar homes in your neighborhood sold for $275,000-$315,000, with homes priced above $320,000 sitting on the market for over 60 days. Based on this analysis, you decide to list your home at $295,000 and receive multiple offers within the first week.
Etymology
This professional term evolved in the 1970s as real estate agents needed a formal name for their market comparison reports to compete with licensed appraisers.
Common Misspellings
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