Tuesday, September 6, 2011 / by Ira Miskin
The Importance of an Accurate CMA
The CMA (Comparative Market Analysis) is a very important tool for determining what a homes value is, relative to other homes similar to the home you are considering purchasing or selling. There are a number of facts and factors that are considered, compared and contrasted within a CMA. But essentially, a CMA when properly prepared and evaluated can add significantly to understanding a propertys true fair market value (FMV).
A thorough CMA is information drawn from a variety of sources, selected for specific criteria and carefully focused to provide a detailed cost-value-benefits assessment. It is not enough to simply look at recent activity in one neighborhood or sub division and calculate the average price for a home sold in recent months. The neighborhoods current, recent and historical activity, the areas history going back not just months but years, activity in a number of categories including homes for sale that both expired and were withdrawn from the market, and evaluative readings of comparable neighborhoods and homes are a portion of the data that helps build a more complete and clear picture of your propertys market value.
The CMA is a collection of broad and fine distinctions some general, some very specific. For example in Marietta, Areas 81 and 82, home values differ, sometimes significantly depending on whether a property is in the Sprayberry High School District or Lassiter High School district. Property taxes will differ depending upon whether your property is on the Cobb County side of Roswell or the Fulton County side of Roswell. Your Realtor should be capable of discerning the right information to gather, know the best way to assemble that information, be knowledgeable of how to assess that information and ready to provide you with both a clear picture of the Market Analysis and examples of back-up to support their recommendations and conclusions.
Understanding a propertys history can help you more clearly and confidently assess a propertys current and future worth, and potentially save you thousands of dollars in a purchase or earn you thousands of dollars in the future when it comes time to sell that property. No two properties are the same. No two CMAs should be the same. Be sure your Realtor really understands the intricacies of developing and evaluating the data, weighing its impact on both properties similar to the one you are considering purchasing or selling and your specific property.
For an initial evaluation of a propertys potential worth CLICK HERE: On-Line-Home Evaluation. Dont underestimate the importance of an accurate CMA.
A thorough CMA is information drawn from a variety of sources, selected for specific criteria and carefully focused to provide a detailed cost-value-benefits assessment. It is not enough to simply look at recent activity in one neighborhood or sub division and calculate the average price for a home sold in recent months. The neighborhoods current, recent and historical activity, the areas history going back not just months but years, activity in a number of categories including homes for sale that both expired and were withdrawn from the market, and evaluative readings of comparable neighborhoods and homes are a portion of the data that helps build a more complete and clear picture of your propertys market value.
The CMA is a collection of broad and fine distinctions some general, some very specific. For example in Marietta, Areas 81 and 82, home values differ, sometimes significantly depending on whether a property is in the Sprayberry High School District or Lassiter High School district. Property taxes will differ depending upon whether your property is on the Cobb County side of Roswell or the Fulton County side of Roswell. Your Realtor should be capable of discerning the right information to gather, know the best way to assemble that information, be knowledgeable of how to assess that information and ready to provide you with both a clear picture of the Market Analysis and examples of back-up to support their recommendations and conclusions.
Understanding a propertys history can help you more clearly and confidently assess a propertys current and future worth, and potentially save you thousands of dollars in a purchase or earn you thousands of dollars in the future when it comes time to sell that property. No two properties are the same. No two CMAs should be the same. Be sure your Realtor really understands the intricacies of developing and evaluating the data, weighing its impact on both properties similar to the one you are considering purchasing or selling and your specific property.
For an initial evaluation of a propertys potential worth CLICK HERE: On-Line-Home Evaluation. Dont underestimate the importance of an accurate CMA.
