A comparative market analysis
How a REALTOR® does a listing price analysis
When you decide to list your home for sale, the first step is to ask for listing presentations by a few REALTORS® that you would like to work with. Each agent will how you a marketing plan and take some notes to prepare a “comparative market analysis” or CMA to determine a listing price. The price of a home is determined in part by the selling price or assessed values of similar properties in the same area. A CMA is not an appraisal (only appraisers can do that) rather it is a method of analyzing and comparing features and locations to determine an estimated listing price and an approximate selling price.
Usually, a CMA is compiled by comparing three or four similar homes or lots that are a) for sale at the moment, and b) have been sold in the past 90 days, and c) expired in the last 90 days. These 9-12 comparable properties will inform you as to the market conditions in your area at the present time. Your REALTOR® will coach you on the differences between your property and the comparables and suggest a listing price. It’s important to note that even though the CMS is a proven tool for marketing a well-priced home, your opinion on valuation is an important part of the process.
A comparative market analysis is a free service that is offered without obligation to buy or sell. It might help you decide if now is the right time for your next real estate transaction. To learn more about real estate values in your neighbourhood, please contact a Pemberton Holmes agent in an office nearest to you.