Figuring out the value of your home can be a difficult and arduous process. Especially in a hot market where prices seem to be climbing higher every day, estimating your property value can be hard to figure out. There are many ways that you can find information about your home’s worth, some are more accurate than others. One way to find out your home’s value is to calculate the property’s CMA.
What Is A CMA?
CMA stands for comparative market analysis. A comparative market analysis essentially aids real estate agents and brokers in approximating what a certain property is worth by looking at selling prices of similar properties in that area. A comparative market analysis takes an in depth look at the age of the home, the location of the home, the size and condition of the home, and several other factors. Getting a CMA is one of the first steps that a real estate agent takes when helping you prepare your home for the market.
In order to find the CMA, an agent must evaluate the low and high ends of the selling prices of the comparable properties range. The low end is calculated by taking the lowest price per square foot of a comparable property in the data set and multiplying it by the number of square feet of the property in question. The high end is the highest price per square foot of a comparable property multiplied by the number of square feet of the property in question. If you average out the low and high end you get the CMA.
If you do not want to try and do a CMA calculation on your own, your real estate agent will create a CMA report for you. There are also online calculators that could help you find the comparative market analysis for your property.
Why Should You Do A CMA?
The reason why doing a comparative market analysis is important is because it can help you know what to list your house for when you are trying to sell your property. Having a comparative market analysis report ensures that you are not listing your house for too much or too little. This will save you time and money because it is more likely that your house will sell quicker and for more money when it is listed at a competitive price as compared to other properties in your area.
When Should You Do A CMA?
It is important that when you get a CMA report or do the analysis yourself that the analysis is done as soon as possible to when you plan to sell. If the report is done more than a few weeks before you sell, the report could be inaccurate as to what comparable properties are currently going for in your area.
Other Considerations For Determining Your Home Value
While a comparative market analysis is a great way to find information that will help you determine your home’s property value, there are other factors and comparisons that may also be useful. Hiring a professional appraiser is one consideration. Appraisers can give you an in depth report on your individual home, but the information may also be based on a CMA. One other way is to check out comparable homes yourself by looking at home listings in your area online.
Do You Need A CMA?
Here at Premier Utah Real Estate, we want to help you find the answers to all your real estate questions. We have many experienced real estate professionals who are at your service. If you are needing a comparative market analysis on your home or are considering selling your home, contact us today!