For those of you who are not familiar with the Real Estate Industry, a CMA stands for a Comparative Market Analysis. This is a common tool real estate agent’s use when working with a seller considering selling their home in the open market.
A lot of times, they are indecisive whether they should sell or not.This rarely has to do with the fact they don’t want to sell more than likely they are simply un-informed about what the process will be, how much it’ll cost them, is the market strong today or not and how would they even know what to list it for? All these are normal thoughts that go on in a seller’s mind which is why it is so important as a real estate professional to educate your clients or prospect clients. Part of the job is to provide clarity and assistance.
Once they are more aware of the market and what is expected to get their home sold, they become surer in their decision, while you as the agent have kept complete control the entire time. This is where I explain what a CMA is and the importance of one and how it relates to the topic of sellers.
A comparative market analysis is a report of all the similar properties that have sold nearby the home where the seller lives. It is an estimate of a home’s value based on the recent sales similar to subject property. Whether you are looking to buy or sell, understanding the CMA is essential.
In this type of report, it is common to see the following: at the top of the page your subject property (sellers’ home) and all the characteristics of the home. Below your subject property is where you will find a list the 3 to 4 solid comparable’s you chose to use to determine what should the home be listed at and at what price it would realistically sell for. One may include more information such as the strength of the market, if it’s a buyer or sellers’ market, why you think they should sell, and possibly point out strong features of the home or it’s neighborhood (community, parks nearby, A+ schools, major highways) that could all be great selling points.
Remember, knowledge is power. The more knowledge you have to inform your clients, the higher the chances they will want to work with you whether its to buy, sell or rent. This is because they know how knowledgeable you are in the field which equals confidence in yourself which makes them feel more confident that you will succeed and, in the end, will choose to work with you😊
For my CMA’s I keep it simple and use excel but if you would like to view a few CMA templates to get you started, click on the links below to check them out!