To figure this out, we research recent sales in the area to create at a Comparative Market Analysis Report (CMA)?
A Comparative Market Analysis (CMA) Report is similar to what an appraiser for a bank would do to establish market values. The evaluation includes recent sales near your property within the past 3 to 6 months.
The CMA report helps buyers to make a fair offer and sellers to establish a listing price.
It all comes down to one question: compared to other, comparable homes in this area, how much is this home worth? Answering that question involves looking at a fair amount of data on other homes in the current market.
The process for doing a comparative market analysis includes:
- Defining criteria for selecting comparables in close range to the home
- Determine a list of quality comparables
- Evaluate the comparables within close range to the home
- Adjust comparable values for differences in size, condition, location, amenities, etc
- Estimate the ideal value of your target home based off the findings
