subject: Comparative Market Analysis: Find Out the Current Value of Your Home in Today's Market [print this page] Comparative Market Analysis: Find Out the Current Value of Your Home in Today's Market
Americans keep track of the values of their stocks, IRAs, bank accounts and investments every day. However, many are unaware of the value on one of their largest investments - their own home. Are you aware of your home's value in this declining market?
A Comparative Market Analysis, referred to as a CMA, can be provided by your local real estate professional to help you determine your current estimated home value. As the name suggests, a CMA will compare your home to similar properties in your market which have sold within a specific time period. A real estate professional might also use currently listed or pending homes to help find the current market conditions.
Comparable sales that are used in a CMA are properties that are most similar to your home. Real estate professionals will use the values from homes that have the same number of bedrooms, bathrooms, square footage, and features as your property. They will also factor in the condition, location, and age of the property to determine value.
This data, combined with the value of your property upgrades, will give you an accurate idea of what your home is worth in today's market. Since the real estate market is constantly changing, your CMA is only valid for a short amount of time. It is a good idea to obtain a new Comparative Market Analysis each year to stay aware of your home's value.
The CMA is the only market-based means of measuring value. When selling your home the CMA is crucial in making sure you are priced appropriately for the current market. A correct done CMA will help sellers price their home in line with market values which will produce a quicker sale.
Buyers need to have their agents do a CMA on the properties they would like to purchase. Doing a CMA prior to writing an offer helps the buyers determine how much they are willing to pay for a house. It also helps to determine if the house is a good deal for today's market.
It is important to understand that a CMA is not an appraisal. Real Estate Agents can only provide an estimated value of your home. Only qualified appraisers can perform an appraisal on your property. The cost of obtaining an appraisal begins around $200.
There are many reasons to run a CMA - to determine a realistic picture of your net worth, determine a list price from your home, or to provide adequate replacement insurance. Whatever the reason, it is a free service offered by many real estate agents in your area. Requesting an updated Comparative Market Analysis will help you keep track of your home's value in this turbulent real estate market.
