Just what is a CMA – and who needs one?

Most estate agents will tell you that correct pricing is the key to a selling a property quickly and easily – and many will offer to prepare a comparative market analysis (CMA) to help sellers determine the right price.

But what is a CMA and how should it be used? The short answer, says Gerhard Kotzé, MD of the RealNet estate agency group, is that a CMA is a report that gives an estimated sale price for a property given current market conditions.
“Consequently, it is of value to both sellers and buyers – and to those who may be planning additions or alterations. However, a CMA needs to be properly prepared by an agent knowledgeable about your specific area to be of any real use, and you need to know what information to extract from it.”
The first step in compiling an accurate CMA is for the agent to walk through your property. This needn’t take long, and your home does not need to be prepared as for showing. However, the overall condition will affect the estimated price, so you should let the agent know if you’re planning some repairs or improvements prior to selling.
The second step is for the agent to consult Deeds Office, agency records and property portals for information about similar properties in your area that have recently been sold; pending sales they know about, (where offers have been made but the property has not yet been transferred); active and expired listings.
“Sold records and pending sales,” he notes, “will provide a reliable indication of the current sale price range in your area, and of what your asking price should be if you hope to sell quickly. But you also need to know the asking prices of other properties currently on the market - and in competition with yours - and those of expired listings, which will usually have failed to sell because they were overpriced for the market.”
Kotzé says it is the nature of the SA property market, where agents mostly represent sellers, that CMAs are usually prepared – free of charge - for property owners contemplating a sale. “Indeed, the third step usually taken by the agent is to consult with the seller and use the CMA to set an asking price that is as close as possible to the probable selling price.
“Buyers can, however, request a CMA on a property they are thinking of purchasing – and would be well advised to do so if they are unfamiliar with the area or have not had a chance to view many listings.
“And home owners contemplating major renovations can also make good use of CMAs to discover how much they can spend without over-capitalising for the area. The estate agent who sold them their property will usually be happy to oblige but they can also buy automated property value reports from Lightstone (”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
    • 18 May 2018
      The need for large office spaces is slowly eroding as more and more employers choose to allow their staff to work remotely. As a result, the home business model has grown in popularity, with many new entrepreneurs choosing to start their business from home rather than in a business district. But, what are the legal implications of operating a business in a residential area?
    • 18 May 2018
      Proxi Smart Services Pty Ltd, a company that deals with the day to day administration of property transfers while the conveyancer attorneys perform the legal side of transfers, lost its bid for the court to allow them to do business in this regard.
    • 17 May 2018
      If you’re a first time buyer, then you are probably only just beginning to realize how expensive furniture can be. That three-piece lounge suite you’ve had on your “Dream Home” inspiration board probably seems like nothing but an unrealistic fantasy to you now. But, a little bit of financial discipline mixed with a dash of smart shopping can go a long way towards helping you furnish your fantasy.
    • 17 May 2018
      In recent years the demand for sectional title apartments – both for rent and to purchase - in Rivonia, which is considered to be one of the most affluent residential and suburbs in Johannesburg, has been incredibly strong.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us