CMAs Explained: How Realtors Determine Your Home Value
- jweddlerealestate
- Nov 19, 2021
- 2 min read
Updated: Apr 8, 2022
Understanding How Your Home Value is Calculated Through Comparative Marketing Analysis
The way in which your realtor determines the listing price of your home can be a bit difficult to understand, especially if it is your first experience selling a home.
You may be wondering, “How is this price calculated? How can I make sure I’m getting the best estimate for my home?” These are valid questions, and at The Weddle Group - RE/MAX Marketing Specialists, we are here to provide you with the answers.
Basically, the short answer is that the listing price of your home is calculated by using a CMA, also known as a Comparative Marketing Analysis. But what exactly does that mean? We’ll break it down for you in this article - and be sure to follow us for more answers to your real estate questions!
“The listing price of your home is calculated by using a CMA, also known as a Comparative Marketing Analysis.”
Defining a “Comparative Marketing Analysis”
A Comparative Marketing Analysis is an in-depth analysis of recently sold homes in your area that are similar to the one in which you are trying to sell. The purpose of a CMA is to get an idea of what similar homes to yours are selling for in the current market, in order to calculate a fair listing price for buyers in the area.
By conducting a Comparative Marketing Analysis, your real estate agent will also be able to identify competing sellers in the area to make sure your home is being marketed above other homes that may be for sale around you.
Essentially, as stated by Investopedia, “The ‘best’ [listing] price is the one that's not so low it leaves money on the table, and not so high that the home doesn't sell at all.” This is what a Comparative Marketing Analysis aims to achieve.
“A Comparative Marketing Analysis is an in-depth analysis of recently sold homes in your area that are similar to the one in which you are trying to sell.”
How can I get a Comparative Marketing Analysis done on my home?
If you are in the market to sell your home, having a real estate agent conduct a Comparative Marketing Analysis is a great way to start. This will help determine a fair listing price and get your home in the competitive buyers’ market much faster.
To get started on the first steps of selling your home and calculating your listing price, don’t hesitate to contact The Weddle Group - RE/MAX Marketing Specialists in Spring Hill, FL today. Our real estate professionals will get you started on best practices for selling your home quickly, efficiently, and for the best price possible. Consult our team today to begin!
“If you are in the market to sell your home, having a real estate agent conduct a Comparative Marketing Analysis is a great way to start.”
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