The Comparative Market Analysis – The most important step in a successful sale.
- Q: How will your Realtor determine the list price for your home?
- A: Your Realtor will produce a Comparative Market Analysis (CMA) to help set the correct list price.
What is a comparative market analysis?
A comparative market analysis is a report that Realtors prepare for their clients when helping them establish the correct list price for their homes. It will show similar properties in similar neighbourhoods that are either currently on the market or have recently sold.
What is the purpose of a CMA?
The purpose of a CMA is to show sellers what their home will probably achieve as a final sale price in the current market. The comparative market analysis helps establish the Realtor’s suggested list price (or typically a price range) by providing details about similar properties – and their sale prices – as comparison.
What to consider when looking at a Comparative Market Analysis.
No two homes are exactly alike: where they are located, their current condition, and a host of other small and large factors are taken into account when reviewing a CMA.
Here are some factors that get taken into consideration when pricing a home for sale:
- Square footage
- Lot size
- Number of bedrooms
- Number of bathrooms
- Any other amenities (fenced yard, number of parking spaces, decor, appliances…)
How will a CMA will help sell your home?
A CMA helps sell properties by providing good guidance for establishing the list price. Choosing the correct list price is the most important thing that sellers can do to attract potential homebuyers.
The most critical phase in the home selling process is the first week. When a property is listed for sale, all buyers currently looking are going to be notified by their Realtors (or by visiting realtor.ca) about the new listing. They will want to see it as soon as possible — unless of course if a home is listed too high, then it will likely be passed over by buyers in favour of other properties that have more to offer for the price. Informed buyers can tell very quickly if a home is overpriced!