Are you curious about your home’s worth?
A comparative market analysis (CMA) is key to providing real estate value. This is where real estate professionals, like me, show you what your competition is…spelled out in black and white.
As your Realtor, I compile data from the Metro Indianapolis Board of Realtors to create the CMA to determine where your home will stand in comparison to other homes on the market, and those which have recently sold, to determine the highest possible asking price.The CMA is qualified and quantified, and is typically designed to give a quick snapshot of information such as number of bedrooms and baths, approximate square footage, amenities, age of the home, property taxes, and more. The Comparative Market Analysis can go be put together for years ago, a month or a week ago. CMA’s can cover areas as narrow as one or two streets surrounding your home, or as broad as an entire subdivision like Summerlake, Fox Run, Hickory Hills, Fiddlers Green, etc.
What isn’t included in the CMA are factors such as the emotional appeal to buyers based upon subjective things such as curb appeal, interior decor, color, lighting, room flow, paint colors, etc. Some of these things ultimately create a higher price (or lower price) than the home next door. At the end of each home’s information on the CMA report there will be a brief statement provided by the listing agent. This statement is usually a combination of fact and subjective opinion, and will generally cover selling points. It could be anything from “kitchen and master bath completely remodeled in 2010” to “Charming! Must see!” For privacy reasons, the CMA that is offered for public consumption does not list every piece of information that has been obtained by the seller’s agent. It will give the what, when, where, but it won’t give the who (the seller’s identity) and the why (why the home is being put up for sale.) This is to protect the seller’s privacy and to keep from inadvertently giving the buyer an advantage in a distress situation.
The CMA is clearly a selling tool and should be interpreted by a professional or with complete objectivity by the seller or buyer. Remember that the CMA is also a buying tool; it is taken just as seriously by the buyer and his agent. As a seller, you are going to use the CMA to ask the highest possible price for your home; as a buyer, you would use it to find reasons to either choose or eliminate your home, and to arrive at the lowest price possible.
If you would like to discuss your very own comparative market analysis for your home click here!