What is a CMA and why is it important in a real estate transaction?
A CMA is a Comparative Market Analysis and is important for both BUYERS and SELLERS....
When a seller is considering putting their home on the market to sell, one of their biggest concerns is how much their home is worth-that's where the CMA comes into play. I pull information from our Multiple Listing Service (MLS) database to arrive at a price range. When preparing a CMA, I look at recently sold properties with similar characteristics-such as square footage, number of bedrooms, amenities, etc. This is the same information that appraisers access to derive their valuation in the appraisal process. In this real estate climate, both short sales and foreclosures will be used in a CMA if those are the most recent and prevalent properties that conveyed.
When buyers are contemplating putting an offer on a property, the question they always ask is - how much is this home worth/what should we offer? The answer to that question is found in a CMA. The CMA gives a snapshot of value by providing the recent sales history in the area.
Real Estate Professional
Rose & Womble Realty Company
4190 S Plaza Trl Virginia Beach, VA 23452
2011 FIVE STAR Real Estate Professional
By Patty Wright
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