A Real Estate CMA or comparative market analysis of a property’s market price, generated for a home owner or potential buyer by a real estate professional.
CMAs are typically created solely from multiple listing service data, but can include data from public records as well. They’re convenient reports that help homeowners clearly see what their home’s market price is by looking at other “similar” homes which are one on the market or were recently sold. Some CMAs will include data from properties which have been pulled off the market because they didn’t sell – that can help give homeowners an idea of what prices don’t work for certain kinds of property.
CMAs can vary greatly because so much of the data is hard, or impossible, to quantify or reconcile. For example, a listing may say that the property has “ocean views” – but what kind of ocean views? How obstructed are those views? From what rooms in the home do you see those views?
Also, a home may have a large lot – but how much of that lot is usable for anything? Another home may indicate that It’s a “fixer” – but what needs fixing? Does it just need new carpet, paint, counters, and cabinets? Or does it need a new roof, foundation, and everything in between?
And anyway, a lot of important information just isn’t on the MLS – like the motivation of buyer and seller, which can’t really be put into numbers anyway. When it comes to estimating a home’s market price, no matter which rigorous methodologies are used, in the end, a CMA is just an opinion of value. That opinion of value is really only worth as much as the judgment and experience of the person giving that opinion. That’s why it’s important to have a CMA prepared by a local professional, who knows the market, neighborhoods, and homes used in the report. That’s the best chance to get a reliable market price analysis of your home.