The CMA helps sellers determine price.The CMA, or comparable market analysis, is a tool that helps sellers understand neighborhood market trends so they can make a decision about setting a sales price in their specific market.
The CMA does not set the price. That is a decision made by the agent and the seller. The goal of the CMA is to provide information so that any decision made is a better one.
This is more than a numbers analysis. It requires knowledge and experience to understand the CMA information and to be aware of any information specific to the neighborhood that may not be apparent at first glance.
Knowing, for example, why one home sold for more than another can prevent you from accidentally increasing your homes value and pricing it incorrectly.
A CMA is often shown at a listing presentation; however, it can also be done at subsequent buyer’s meetings. The agent generally takes the CMA if they do not get the listing or commitment from the buyer.
While there is software that can produce a CMA in rapid order, a good CMA is not a quick-fix tool. It provides the opportunity for a more in-depth market analysis and often is a personal document that provides a way to understand the competition.
No market stays the same and changes need to be tracked until a property sells. Many agents will do this by periodically updating the CMA to account for any property sales that may have occurred since a listing. One sale can create changes that could affect all other properties in the area.
The value of a CMA prepared and presented by a professional realtor can also be seen through information provided by the National Realtors of Association (NAR). According NAR, sellers who use a real estate professional make 16 percent more on the sale of their home than those who choose to sell it themselves.
CMAs are not intended to be a free tool for those who want to sell their own homes. While the idea of a free CMA may be seem appealing, the CMA will become worthless over the course of time without updates and analyses of the changing market.
Premiere Mortgage has offices on Maui and Kaua‘i and provides a wide range of services to the real estate community. Tricia Morris may be reached on Maui, in Kihei, at 874-8800, Wailea, at 891-8900, West Maui at 665-8800, on Kaua‘i at (808) 822-2300, or toll-free at (800) 813-7711.