| A method
of valuing homes that is very popular with real estate agents is the competitive
market analysis (CMA). This method is based on the principle that value
can be estimated by looking at similar homes that have sold recently. In
addition, the CMA method considers homes presently on the market. The CMA
approach is usually simpler to work than the standard market comparison
approach because it requires no dollar adjustments. Most importantly, a
CMA is more than a market appraisal; it is a listing tool that a sales
agent prepares in order to show a seller what her or his home will likely
sell for, and it helps the agent decide whether or to accept the listing. |
The procedure
in preparing a CMA is to select homes that are comparable to the subject
property. The greater the similarity, the more accurate the results will
be and the more likely the client will accept the agent’s estimate of value
and counsel. It is usually best to use only properties in the same neighborhood.
Factors which make a property more appealing to a buyer include good location,
extra features, low interest, meticulous maintenance and priced below market.
Similarly, a property is salable if the sellers are motivated to sell and
want to do so soon, will help with financing and will list at or below
market. |
The
emphasis in CMA’s is on a visual inspection of available sales data to
arrive at market value directly. No pencil and paper adjustments are needed.
Instead adjustments are made in a generalized fashion in the minds of the
agent and the seller. In addition to its application to single-family houses,
CMA’s can also be used on condominiums, cooperative apartments, townhouses,
and vacant lots...provided sufficient comparables are available. Contact
OPTIONS for your complimentary CMA. Learn more about appraisals. |
