What is a CMA and why do you need one?

CMA is real estate shorthand for Comparative Market Analysis. A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.

The first thing an agent will need to do to provide you with a CMA is to inspect your property. Generally, this inspection wont be overly detailed, not does the house need to be totally cleaned up and ready for an open house. It should be in such a condition that the agent will be able to make an accurate assessment of its condition and worth. If you plan to make changes before selling, inform the agent at this time.

The next step is for the agent to obtain data on comparable properties. This data is usually available through the Multiple Listing Service and the agents knowledge of the market and area. This will give the agent an idea how much your property is worth in the current market.

Please note that the CMA is not an appraisal. An appraisal must be preformed by a licensed appraiser. The CMA process takes place before your home is listed for sale. This is a good assessment of what your house could potentially sell for.