What is a Comparative Market Analysis (CMA)?
Provided by your Colorado Springs REALTOR®
You would not want to sell your home for anything less than fair market value. On the other hand, by setting a selling price higher than what you should could be a mistake that results in a home that doesn't sell.
Before putting your home on the market and setting a price, it is important to first have an estimate of your house's value. This can be easily accomplished by having us provide you with a Comparative Market Analysis.
Providing a Comparative Market Analysis, or CMA, is a valuable service for home sellers but can also be beneficial to home buyers.
A comparative market analysis, or CMA, is an evaluation of a home's value based on available local market data including:
Active listings are homes currently for sale. These listings matter only to the extent that they are your competition for buyers. They are not indicative of market value because sellers can ask whatever they want for their home. It doesn't mean any of the prices are realistic. The offered sales prices do not reflect market value until they sell, and in buyer's markets, for example, most sell for a lot less.
Pending sale homes are formerly active listings that are under contract. They have not yet closed, so they are not yet a comparable sale. Unless the listing agent is willing to share information about the pending sale -- and many are not -- you will not know the actual sold price until the transaction closes. However, pending sales do indicate the direction the market is moving. If your home is priced above the list price of these pending sales, you could face longer DOM.
Homes that have closed within the past six months are your comparable sales. These are the sales an appraiser will use when appraising your home for the buyer, along with the pending sales (which will likely have closed by the time your home is sold). Look long and hard at the comparable sales because those are your market value.
Off-Market / Withdrawn / Canceled Listings
These are properties that were taken off the market for a variety of reasons. Usually the reason homes are removed from the market is because the prices were too high. The median prices of this group will almost always be higher than the median prices of comparable sales.
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