Understanding Comparative Market Analysis (property valuation)
A CMA is a home/ property value estimator. It gives you the market value of your home at a specific time. It helps sellers choose the best listing prices for their properties. The “best” property price is the one that’s not so low it leaves money on the table, and not so high that the home doesn’t sell at all. The “best” home price will depend on market conditions, and the strategy we decide to use for marketing your home. For example, if the market is hot or if inventory is low, the listing price might be slightly higher. Conversely, if there are a lot of similar homes on the market, the listing price might have to come down to be competitive.
For buyers, a CMA (property value estimate) can verify if a home is a good deal and help pinpoint a competitive offer that will be taken seriously—without going overboard.
In other words, a CMA estimates the property/ house value and is important for buyers & sellers.
What’s in a CMA report (property valuation report)?
The CMA (home value estimate) analysis considers the:
- location (quality of the neighborhood, community amenities, how are the schools)
- details about the subject property and comparable homes (age, size, construction, style, condition, and other factors)
Our CMA – home valuation report – will include detail information about all the comparable properties: address, description, square footage of the living space/lot, year built, number of bedrooms/bathrooms, pictures, price they were listed for, sale price, etc.
If you would like to get a more accurate Home Valuation of your home then the CMA estimate we would request an in-person visit to gather more information about your home. We’ll want to see the layout (particularly the feel of the livable space), the curb appeal, the immediate neighbouring homes look and feel, privacy, landscaping, quality of upgrades and finishes, etc. After this we would be able to give you an accurate market value of your home (the price you should list for in today’s market). The Home Valuation CMA may be used to help set a listing price.
The buyer’s lender may want to do an independent appraisal on a property. The lender wants to make sure the property is worth what the buyer is paying for it. Just because other homes nearby have sold for a similar amount, it doesn’t mean a lender will be satisfied the home is worth what the buyer is paying for it. If the buyer were to default on the mortgage and the property were to go into foreclosure, the lender wants to make sure it can recoup the money it has lent on the property. The lender will be more confident in its lending by reviewing an appraisal for the property.
Please note your information will be kept strictly confidential and will only be used to help us provide you with the answer to the question: ‘How much your home is worth?’ Find out how much your investment is worth with this Free-No obligation Property Valuation. Our Free Home value report covers all property types: house, duplex, rowhouse, townhouse, condo & land.
Provide info about your home and start your Real Estate journey with Dana & Amar! We’ll be happy to help, and provide you with the Free Home Valuation.