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Thinking of selling your home? One of the first steps in the home-selling journey will be identifying a local real estate expert. Once you have selected an agent, they will jump-start the process by conducting a Comparative Market Analysis.
What is a Comparative Market Analysis (CMA)?
A Comparative Market Analysis (or CMA) is a detailed report used to estimate your home’s value. This is done by comparing your property with others that have recently sold in the area. A real estate professional will come to your home to tour it and discuss its current market value. They will identify how much your property is worth based on factors such as number of bedrooms and bathrooms, square footage, the home’s condition, and regional market trends.
The report will evaluate other homes in the area that have sold in the past three to six months to help determine the best price point for your property. Also, you will learn what nearby homes have recently sold for and how long they were on the market. Ultimately, your real estate expert will present a low, median, and high selling price for your property based on the comparable homes (or ‘comps’) from the CMA.
Why do I need a CMA, and what are the benefits?
Homes that are correctly priced attract buyers. In fact, a CMA can help a home sell faster and for more. By considering other comparable homes in your local real estate market, you can ensure you are attracting the best buyers. A CMA can also help you make informed decisions and set realistic expectations about the home-selling process.
What if the CMA values my home lower than I wanted?
If the value of your home comes in lower than hoped for, you can increase your home’s value by making certain repairs and upgrades that have a high return on investment. A CMA can be used as a tool to identify which home upgrades would make the most sense. With your real estate agent, you can discuss if home upgrades or remodeling projects like replacing your garage door or painting your home’s exterior would make financial sense based on other comparable homes.
If you decide to invest more in your property before putting it on the market, consider the Windermere Ready Program. This program offers local expertise and a loan of up to $100,000 in strategic home repairs and upgrades to prepare your home for the market.
How is a CMA different than a pre-listing inspection?
Both a CMA and a pre-listing inspection are done at the beginning of the home-selling journey. However, a pre-listing inspection is conducted to give sellers and homebuyers more information about the property. A licensed home inspector will come to your home and identify potential repairs to be addressed. While a pre-listing inspection is also done before listing a home, it is less of a pricing tool. Instead, it is more of an evaluation of the home’s condition. Using information from a CMA and a pre-listing inspection, a seller can identify what upgrades or repairs would be most valuable.
How is a CMA different than an appraisal?
An appraisal is done further along in the home-buying process. If a buyer is financing the purchase of a home, their lending institution will require an appraisal. This ensures the bank does not lend more money than is necessary for the home. A licensed or certified appraiser will come to your home to ensure the home’s value is correct.
I’m ready to sell my home. Where do I get my CMA?
To get started, connect with one of our highly rated, local real estate agents from Windermere Bainbridge Island. Our experts know the local market and can provide a detailed CMA. They can guide you through the home-selling process as your trusted advocate, providing all the support and information you need.
