Do you know how much is your Home is worth?
What is a Comparative Market Analysis (CMA) and how can it be a helpful tool for you? A CMA is an estimate of what a property is worth based on the current market value of comparable properties. A CMA is not an appraisal and should not be treated as such. A CMA simply gives you an idea of what a home should be selling for based on current market conditions. An appraisal, on the other hand, is an actual statement of value and can only be conducted by a licensed appraiser.
A CMA can be a very useful tool for any homeowner or any prospective buyer. Whether or not you are looking to sell, a CMA can provide a homeowner with an idea of the value of his or her home so they can better explore their options. If an individual has already decided on selling his or her home, then a CMA will be necessary for setting the list price of that home. A prospective buyer should have a CMA completed on any property of interest in order to determine if the list price is appropriate.
There are several factors that determine the strength of a CMA. In order for the analysis to be accurate, the CMA must be as current as possible. You do not want to base the value of a home on a CMA that was completed one year ago because the price simply will not be accurate. You must have a current analysis completed, and that analysis needs to be completed using comparable properties that have sold as recently as possible. As a rule of thumb, anyone completing a CMA should not use a comparable sold property that closed more than three months ago. A CMA can use comparable properties that have been sold, are active listings, or are expired listings, but of the three groups the recently sold listings will be the most effective comparison.
You want the characteristics of the comparable properties to be as similar to your subject property as possible. This includes the location, size, the number of stories, number of bedrooms, number of bathrooms, and many other characteristics. You will want to be as thorough as possible when giving the details of the subject property in order for the CMA to be accurate. If there is a difference between your subject property and the comparable, then your agent should be able to adjust for that difference in the CMA.
For instance, if you have a pool and you are using a comp that does not have a pool to determine your value, your agent will be able to add the estimated value of a pool to the comp to determine the value of the home. Of course, it would be easier to simply use a comp that has as many of the same characteristics as possible, but that may not always be feasible.
Whether you are looking to sell, looking to buy or are just curious about the value of an Arizona property, I can run a CMA for you today. Just enter as much information as possible on my FREE C.M.A. Request and I will contact you within days with a completed CMA that can give you a good idea of the market value of the property.
