What Sellers Should Know About CMAs

Whether you are buying or selling a home, your real estate professional can give you a snapshot of the local market known as the competitive or comparative market analysis or CMA. These are convenient reports that help sellers choose a listing price and buyers to make competitive offers on a given home.

CMAs are generated from multiple listing service software and vary greatly depending on the search fields that are input by the real estate professional. Each quantifier makes the search increasingly specific – type of home (detached vs. attached), zip code, number of bedrooms, baths and living areas, square footage, and numerous other search criteria.

The result is a report that tells you which homes have recently sold, their selling prices, how long they were on the market and other information. The CMA will also tell you about homes in competition with yours that are similar in size, price, amenities, and location.

As many fields of information as there are, some criteria simply isn’t available in a CMA. If the MLS has a field for “water views,” you’ll know. But if not, you’ll have to learn more in the remarks section that is filled in by the listing agent. There you might find “great views” or “lake views.” But who’s to say what makes a great view?

CMA results may vary even between identical homes. One property may simply offer better drive-up appeal or is in better condition than the other. One may be updated or staged more attractively. Those differences can be reflected in the sales price.

When you’re looking at properties that sold, you can also learn how long the home took to sell. This is where a real estate professional who is a neighborhood specialist can be invaluable. He or she may seen these homes while they were being marketed and can tell you if they were in condition similar to yours.

One thing a CMA can’t tell you is why a seller agreed to take less for their home or why a buyer paid over market for another home. Family problems, corporate relocations and other reasons all play a role. If the sale was quick, the seller was likely highly motivated to take the first offer. If it didn’t sell quickly, the seller may have overpriced the home.

For these reasons, CMAs are not home valuations. They are simply tools to use alongside your real estate professional’s knowledge of the market. Your real estate professional will suggest a pricing strategy for you based on the CMA, but the asking price will be up to you.

Last, a CMA is only as good as the most current information. Ask your real estate professional to keep you abreast of the market with new sold and listings information.

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About thenoelteam

As a Broker with RE/MAX Alliance, I work energetically for my clients whether they are a buyer or seller. I help you achieve your goal of owning a home or getting the best price for your home in the shortest time possible. After graduating from UCLA with a degree in communications and finance, I was licensed in 1977 and since then I have sold over 3600 properties amounting to over $1 billion in sales. I currently rank in the top 10 in home sales for Colorado. I offer the same quality of service and superior communication to all clients, ranging from starter homes to multi-million dollar estates, commercial and income properties, relocations and foreclosures My goal is to provide you with the best representation possible whether you are buying or selling. Over the years, one of the things that I've discovered is that there is a difference in the way individual Realtors do business. For me, I have always felt that honesty and personal integrity are the foundations upon which a successful business and career are built and sustained. I have an extensive background and knowledge base in real estate, including financing, which has enabled me to provide outstanding, quality advice and service not found with many agents today. My commitment to communication creates a positive relationship between my client and myself that results in a successful property sale or purchase. My passion for real estate, commitment to my clients and personal integrity has helped me to achieve success placing me in the top 1% of all brokers in nationwide. In my career, I have earned a number of awards and received considerable recognition for my success but the most significant recognition comes from the fact that over 75% of my business comes from past clients. My success is a true measure of my client satisfaction.
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