What is a Comparative Market Analysis?

A CMA or comparative market analysis is used by real estate agents to determine the market value of a property. How is a CMA done This is done by comparing it to similar properties that have recently sold, and properties that are currently listed for sale in the area. An experienced real estate agent will do a walkthrough and take into consideration all factors affecting the condition of a home. Factors that are incorporated in a CMA • Average price per square metre in the area • Recent sale prices of similar homes • Comparative prices of other properties still on the market • Transfer history • Most recent comparable sales in the surrounding area • Details of your property • Expired Property Listings and Properties that failed to sell • Properties that are withdrawn from the market Why you need a CMA • Correctly pricing your home to sell quickly • As a buyer you can make sure you are paying market value for a home in an area you are not familiar with • As a home owner you can use it to make sure your renovations are not over-capitalising your property.