What is a CMA in Real Estate

 

One of the first real tasks a real estate agent should learn to do is create a CMA or more appropriately a “Competitive Market Analysis.” No matter the client (buyer, renter, seller, etc.), having and presenting a keen understanding of the market, available and relevant listings, as well as the correct property value is absolutely essential. Unfortunately, it can often be challenging to know exactly what to or not to include. This week, we’re going to show you exactly how a CMA works and how to produce the best CMA possible. We will continue to add to this post so, keep us in your bookmarks!

What Is A CMA For Real Estate?

First, we need to define what a CMA or “comparative market analysis” really is. Plainly, a CMA allows you to present your clients with similar properties to the property you are trying to sell while also comparing an estimated home value to your property. Why is this necessary? To determine what fair value is for a home, property or rental that has yet to be sold. Some agents and brokers may also refer to this as a “competitive market analysis.”

A CMA is determined by the real estate agent, and is a vital part of real estate, as it helps not only agents but, buyers and sellers as well. If you are a prospective buyer, it is a guide in determining if the asking price is fair or not. Real estate agents create CMA’s to better inform clients if the asking price is below or above the current market price. If you are a seller, a comparative market analysis will help them determine a realistic or fair market asking price, while consulting their agent on market fluctuations and trends. Finally, a CMA will help the agent bridge the gap between buyer and seller pricing questions. Utilizing the right real estate MLS for commercial or residential real estate is vital in this process.

Location: Florida, USA

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