Are CMA's Just For Sellers?


Are CMA's Just For Sellers?
By Scott Rogers • April 4, 2008
Not at all! They are for buyers as well! First, a CMA is a comparative (or "competitive", depending on who you ask) market analysis --- or, an analysis that compares one property (the "subject property") to other similar properties that have either recently sold, or are on the market. As I explain to my clients, my CMA's attempt to account for all significant aspects and characteristics of a home including square footage, functional space,age, style, condition, and more. Why would a buyer want a CMA? When making a purchase offer, sometimes buyers determine price based on what they think the seller will accept, or what would be a reasonable offer given the asking price. Ignore the asking price! That's not to say that all offers should be low offers trying to "make a deal", but consider these two examples: House is worth $200,000, but listed at $250,000. Buyers try to negotiate 10% off, and offer $225,000. Negotiations fizzle. House is worth $200,000 and listed at $195,000. Buyers try to negotiate 10% off, and offer $175,500. Another buyer comes along and buys the house for $193,000. This illustrates the great need for a buyer to understand the segment (location, price, etc) of the market in which they are buying. Once a buyer has settled on a particular property, an great way to provide the buyer a context for making an offer is to perform a CMA, to compare the property to similar, recently sold homes. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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