What is a CMA?
CMA stands for Comparative Market Analysis, and is also sometimes referred to as competitive market analysis. A CMA is a fancy term that real estate agents use for a price opinion.
CMA: a price opinion that helps both the homeowner and their real estate agent estimate what their home might sell for if they were to put it on the market, based on recent sales.
Usually, real estate agents offer CMAs to a potential home seller (client) for free, presented to the potential seller in a report by the real estate agent. The CMA report will show price per square foot, trend lines, pictures, and more.
How is a CMA Generated?
Most real estate agents use what is called a Comparative Price Analysis, meaning they look at all of the sales of homes that are very similar to the client’s home within a recent timeframe (the last 90-100 days). They then determine where the client’s home should be priced if they were to put it on the market.
Factors that determine if a house is “similar” include the neighborhood, number of bedrooms and bathrooms,, square footage, distance to schools and stores, walk score, etc. The goal is to figure out what the home is worth based on the research findings.