Whether you are buying a home or you are selling a home you want to determine a fair price for the home. How do you know what is a fair price?

A Comparitive Market Analysis (CMA) is report that is ususally prepared by the real estate salesperson who is representing you. If you are a seller it can help you determine how much you should list your home for. If you are a buyer it can help you determine how much to offer on a listing you want to buy.

What is included in a Comparaitve Market Analysis (CMA) ?

The CMA should include:

• Similar Homes that are Currently Available
• Similar Homes that are Sold Conditional
• Similar Homes that have been Sold recently
• Similar Homes that have Expired or ones that didn't sell.

A completed Comparative Market Analysis is presented in the form of a report and will typically include a price range for the property, rather that a specific set price.

The estimated sales price involves looking at the properties on the report and comparing it to the property being considered. Consideration needs to be made for any differences in the comparable properties. For instance one comparable property may be a corner townhome and the one you are considering is not a corner unit so you would need to allow for that difference in determining the price.

The Comparative Market Analysis is a "snapshot" in time. The real estate market constantly fluctuates , so it is important to get a current analysis.

If you would like a complimentary Comparative Market Analysis for your home or one that you are considering buying, please click here.

This article was prepared by John Morrison, Sales Representative of Right At Home Realty Inc.