What Is A CMA In Real Estate

There is a very famous term in the real estate market that is called CMA and many people want to ask what is a CMA in real estate. Real estate is a huge industry and there are many things that need to be understood about this field. CMA is one of the most important factors among them all.

In this article, we are about to provide you with all the information you need to know about this topic. This article covers all the facts about CMA like the process of evaluating the comparative market analysis of a property before selling it. So continue reading.

What Is A CMA In Real Estate

Image Source :- https://tinyurl.com/55ncjy76

A CMA is a comparative market analysis in order to establish an accurate price for the listed property which is based on the other sold properties in the same locality that have similarities in the structure sold in recent times.

Basically, brokers and real estate agents create the CMA reports so that the home owners can set the right price and the buyers don’t get confused. Here is the answer to your question: what is a CMA in real estate?

All You Need To Know A CMA Report

Image Source :- https://tinyurl.com/2fujsyd9

After knowing what is a CMA in real estate it is obvious for you to want to know what is a CMA report in real estate. The answer to this question is really basic. After conducting a CMA brokers and real estate agents create a report that contains all the detailed information of that research. Here are some things that a CMA report contains:

Address of the property including all those comparative properties.
The description of every comparative property.
The square feet of every property.
The sold prices of every comparative property.
Dollar adjustments if any.

How You Can Do A CMA

Image Source :- https://tinyurl.com/2cu76cb4

We gave you the answer to your question about what is a CMA in real estate and you know that it is basically a comparison between the prices of sold properties in the recent time span before soldering out another property. But this is not the only thing that matters in the CMA.

In real estate what is a CMA, if you want to know the actual answer to this question then you must know the steps that need to be taken in order to create an accurate CMA before selling the property.

1) Make An Assessment Of The Neighborhood

First thing first, in order to create the accurate CMA you have to set the accurate listing price. You have to ensure that the property you want to sell is considered to be a good deal for the expected buyers. The right price of a property depends very much on the neighborhood of the home.

For example, if the property you are trying to sell is in a good neighborhood. If the property is surrounded by attractive blocks and is located on the main road where people can easily access the main area and the schools, malls, hospitals, and markets are nearby then the price of the property will increase automatically.

2) Gather Information About The Property

If you want to create an accurate CMA then you should pay an in-person visit to the property in order to gather details about the house as much as possible.

Detailed information like the carpet area of the property, the age of the house, the type of construction, layout, the condition of the home, and the upgrades that are going to be done before selling the property. This is how you will get the answer to your question: what is a CMA in real estate and how to create an accurate one?

3) Identify The Competitions

In the next step, you should identify the competition of your property. Select a home that has been sold in recent times and try to select the property as close as possible to the listed property because then you do not have to evaluate the neighborhood of the home since it’s the same.

If you are lucky enough then we are even able to find properties with the same carpet area and the same age that offer similar amenities. Remember that the property prices in the real estate market fluctuate rapidly.

4) Select The Differences

If you want to know what is a CMA in real estate then you have to know how to create one. In order to create one you should know how to identify the differences between one property and another.

Like if the other property has a bigger carpet area or has an extra bedroom then it’s obvious that the price of the property is going to be much higher than the one without these things.

5) Determine The Square Foot Price Of The Property

Most of the potential buyers often ask about the square foot price of a property and you have to calculate the per square foot price of the house. The most effective way to do that is a great method according to the CMA.

First, you add all the per-square-foot prices of the sold properties and then divide that by the number of sold properties. Now you get an average per square foot price of the properties that have a similar type, same neighborhoods, and amenities. Now all you have to do is multiply that rate with the square feet of your listed property.

Conclusion

This article starts with a question that asks what is a CMA in real estate and we tried our best to provide you with an answer in the most easy way so that you can leave this article with zero questions. We hope that you found this article informative.

To wrap it up all we can say is that CMA is indeed an important factor in the real estate world specifically when you are trying to sell a property.

Have A Look :-