When homeowners first contact a real estate agent to list a property on the market, one of the first items on the list is the Comparative Market Analysis (CMA). The CMA is the published result to market analysis of property value. The main instrument used by the real estate industry, CMA establishes a listing price range.
Difference between CMA and Mortgage Loan Appraisal
CMA price valuation enhances the competitiveness of a property on the market for sale. Performed by real estate agents, CMA presents the value of a home or commercial property in relation to other properties in the same area. Median housing prices reflect the instrumentation of the CMA. Rather than calibrate value based on mean average sales price, most real estate professionals apply econometric analysis to arrive at a ranging price.
The CMA presentation is also an exhibit of a real estate agent’s ability to represent a listing. How well listing valuation appears has much to do with experience. Most CMA values are proximate to mortgage loan appraisal figures. If a CMA report stands out from other agent submissions, it is likely that the agent will be selected as the listing representation on the property.
Price formulation in CMA is reported as a spread rather than a fixed price. The same technique is used to calculate property value in second mortgage loan consideration. More flexible than other appraisal methods, the CMA offers refinancing applicants the best possible representation of property asset value.
Preparation of the CMA Report
The presentation of a seller’s property in a CMA report evidences intent to sell. Preparation of CMA reporting by a real estate agent evidences the intent to bring a seller’s property close to the market price. The CMA supports the market listing of a property by comparing a seller’s home or commercial real estate asset with other similar properties on the market.
Collection of market information initiates the comparative process. The Multiple Listing System (MLS) and county public records holding title information are used in valuation of a property prior to listing. In addition to aggregate indices of median housing prices, real estate agents will form comparison of three or more active, pending, sold, or expired properties. Using this information, an agent estimates CMA pricing spreads.
Selection of an Agent
Agent selection may be dependent on CMA presentation. Property owners seeking the most value on their investment look to expert representation. If an agent has proven that they are well versed in CMA analysis, it is far more likely that they will be skilled at selling a property.
CMA presentation is a good indicator of a real estate agent’s proficiency in financial or econometric analysis, and also negotiation. Selection of a real estate agent based on CMA price reporting is a reliable approach to listing representation.
Salt Lake City, UT property owners use CMA reporting to seal the deal. Request CMA from a real estate agent before listing a property. Please don’t hesitate to contact us for these services along with a full list of the resources we can provide you in order to sell your home.