Here’s how CMAs can get you a more accurate value for your home.
No two homes are alike, so how do you determine what a home is worth? This is where competitive market analyses come in, and we’d like to explain them to you today.
A CMA is a side-by-side comparison of homes for sale and homes that have recently been sold. This process takes many important details into account such as neighborhood, neighbors, baths, lot size, and any unique feature of your home. The purpose is to find a reasonable market value based on what’s happening in your local market.
To do a CMA, agents take a look at tons of data about your area, and much of it comes from the MLS. This is a list of homes that only agents, appraisers, and other real estate professionals have access to. It contains the most accurate and up-to-date information possible, so you know the data is good.
This leads us to the big question: How accurate is a CMA? Using the available data, a CMA is the best way to find the current value of your home. The only issue is that the market is constantly changing. The number you get from a CMA could be as accurate as possible, but it only takes a few new homes in your area to change the math overnight. Also, a CMA is reliant on the skills and experience of the agent performing it. If your agent is inexperienced, your value could be off.
Today, instant home valuations are increasingly popular, and it’s easy to see why. They’re incredibly convenient, but they should only be considered benchmarks. Whatever algorithm a website uses to evaluate your home will never take into consideration all the necessary data. That’s why most agents recommend receiving a CMA to get a truly accurate home value. Many agents will even do one for you for free!
If you are considering making a move in the new year, or if you have any other questions, please reach out to my team via phone or email. We’d love to help!