Maximize your real estate potential with a comprehensive CMA.
In today’s real estate market, one of the essential tools for agents and sellers alike is the comparative market analysis (CMA). This process, it provides valuable insights into property values and helps sellers set the right price for their homes. As an experienced real estate professional with a focus on delivering accurate assessments, I’ll guide you through the process of conducting a stellar CMA.
1. Understanding the concept. A CMA is similar to an appraisal, though it’s not carried out by licensed appraisers. CMAs serve as an invaluable resource to help sellers and agents make informed decisions about property pricing. The key is to carefully examine the property and understand its unique features, such as bedrooms, bathrooms, square footage, acreage, and location.
2. Navigating the MLS for similar properties. To create a robust CMA, it’s essential to look for comparable properties within the neighborhood. Ideally, focus on homes sold within the last three to six months and of similar size. A general rule of thumb is to seek properties within 500 square feet of the subject property with matching bedroom counts. However, in some cases, slight adjustments may be needed to find the best comparables.
3. Assessing adjustments for unique features. As you evaluate the identified properties, consider any significant differences that could impact the price. Items like extra garages, additional bedrooms, more square footage, larger yards, and pools require adjustments in the CMA. Consulting other appraisals can provide insights into the value of specific features, helping you make accurate adjustments.
4. Comparing conditions and features. It’s vital to ensure that the properties being compared are in similar conditions. An older property with no updates cannot be directly compared to a recently renovated home. Show clients photos of comparable properties to help them understand the assessment. Empower them to analyze their property honestly, without feeling undervalued, and use this information to make appropriate adjustments.
5. Utilizing dollar per square foot for mainstream homes. For standard homes and price ranges, the dollar-per-square-foot metric is an effective method to gauge property value. While this approach might not be as relevant for high-end properties with unique constructions, it serves as a helpful benchmark for mainstream homes. Lenders often use this metric to assess the property’s appraisal value.
By mastering the art of CMA, you can empower your clients with valuable insights into their property’s worth. If you have any questions or need assistance with your CMA, feel free to call or email me. Together, let’s navigate the world of real estate with confidence.
