What Is A CMA?

The Comparative Market Analysis is the Fair Market Value, which has been defined as:

The highest price estimated in terms of money which the property will bring when the property is exposed for sale in the open market by a willing seller, allowing time to find a willing buyer, neither buyer nor seller acting under compulsion, both having full knowledge of all the uses and purposes to which the property is adapted and for which is capable of being used.

This market value definition presupposes perfect knowledge on the part of the buyer and seller. Since this perfect world rarely exists, the estimate of the price is generally indicated as a range.

A REALTOR is not an appraiser, but will generally use many of the tools a professional appraiser would use, in evaluating market value of your property; comparable sales, competitive listings in escrow, square footage, location, amenities, and the general condition of the property.  Represented by a good cross section of the competitive real estate inventory and recent sales. Since no two properties are exactly alike, other competitive inventory is a good reference source.

The estimated value of your property does not mean that the sale of the property could not occur at a higher price. The price you ultimately receive of course will depend on your motivation, the motivation of the buyer, and market conditions at the time offers are received.

Once the market is tested at the determined price, you and the REALTOR will want to make periodic reviews to ensure your home remains competitive.