Or, maybe they don’t know how to do a CMA so they just guessed a list price.īlindly offering the list price will create issues throughout the home buying process. You should NEVER assume that a real estate agent priced the home accurately.įirst, a list agent could have been pressured to list a home at a higher price. On the buy-side, real estate agents should perform a comparable market analysis so they can determine a fair offer price. Create a CMA prior to listing the home, and ideally, before the listing appointment so you can discuss the list price. A comparable market analysis should be used to price homes for sellers AND home buyers. This helps us create better price estimates. However, the process we’re covering in this article is similar to the process licensed appraisers use. The purpose of a CMA is to help homeowners price their home for sale and to help home buyers determine a fair offer price. An appraisal often costs hundreds of dollars and can be used for securing a loan, refinancing a home, or distributing assets in a divorce. Only an appraisal can be completed by a licensed appraiser. It’s similar to an appraisal, but not exactly the same. What Is A CMA?Ī CMA, or Comparable Market Analysis, is a tool used by real estate agents to determine an estimated fair market value for a specific property by comparing it to similar homes that recently sold in the area. In this post, I’m going to share with you the exact steps for doing a CMA so that you can provide better pricing and home valuations for your clients. That starts with understanding how to do a CMA, and ideally, getting your Pricing Strategy Advisor certification. To me, that means understanding how to price and value homes with greater accuracy. Unfortunately, I’ve seen a lot of real estate agents just pull comparables, without making adjustments, and then give their buyers and sellers a wide range of pricing for a home.Īs a Realtor, we have an obligation to uphold the standard of our industry and work toward the best interest of our clients. Pricing is so fundamental to being a real estate agent, that every single agent should learn how to do a CMA, or a Comparable Market Analysis.
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