Your Home's Value: The CMA Explained

Ultimately, the value of your home will be determined by the market. Basically, the market value is the amount buyers are willing to pay at the point in time that you want to sell. A Comparable Market Analysis (CMA) is the best way to judge market value.

Avoid the urge to price your home based upon considerations that do not affect its market value, such as:
  • How much money you need to purchase your next home.
  • How much you paid for your home.
  • How much you paid for improvements to your home.
  • The value of a similar home in a different community.
  • Area appreciation statistics.
  • The cost to build the same home today.
  • Personal attachment.

Remember, the market determines price!

What is a Comparable Market Analysis?
A CMA is the best way to determine a reasonable asking price for your home. Our analysis looks at properties that are similar or comparable to your home. It takes into account all of the variables that may affect the value and marketability of your home.

How are comparable homes selected?
Properties located in close proximity to your home that have similar characteristics (i.e., lot size, square feet, number of bedrooms, baths, etc.) are researched. Since our goal is to obtain a balanced view of the market, we look at similar homes that fall into four basic groups:

  • Currently listed homes identify the competition
  • Recently sold homes indicate what buyers are willing to pay
  • Homes with sales pending point to the current demand for this type of home
  • "Expired" homes that failed to sell, suggesting what buyers will not pay at this time