If you own your home, you need a CMA, or Comparative Market Analysis, annually. A CMA will offer you a clear picture of how your home stacks up to other recently sold comparable properties located nearby. This is especially important in the Arizona real estate market, which has been on the rise; you may be pleasantly surprised when you learn how much value your home has gained.
There are two main reasons a homeowner should get a CMA. First, it will show you what’s happening in your local real estate market by telling you what comparable homes in your area are selling for, and your Realtor will be able to determine a listing price for your place. Second, if you’re considering a remodel, a CMA may shed light on the newer amenities that are popular in your area, as well as those that add long-term value to your home.
Even if you aren’t considering selling or remodeling your home, an annual CMA will give you an idea of how healthy the real estate market is in your local community. The CMA report “includes a fact-based portrait of the home including information such as number of bedrooms and baths, approximate square footage, size of major rooms, age of the home, property taxes, and desirable amenities such as fireplaces and pools” says Realtor.com. Your agent will likely look back and report on nearby comparable home sales in the past three months, and a seasoned agent will know when to expand that time frame or geographic boundaries based on your specific scenario.
Your Realtor’s remarks in the CMA will also take into account any features that would cause an emotional attachment in buyers, and therefore increase potential value (historic details, nearby points of interest, recent remodel information, designer colors and finishes, and additional benefits, amenities or custom work). They should offer a CMA at no charge, whether or not you decide to list your home as a result of the findings.
Keep in mind that a thorough CMA doesn’t take the place of an appraisal, which can only be performed by a licensed appraiser, usually in connection to the financing of a home purchase, or refinance of HELOC. It doesn’t include those emotion-evoking remarks, and appraisers are bound by USPAP, or Uniform Standards of Professional Appraiser Practice, policies. CMAs have no legal or financial standing; they are just used as a helpful snapshot.
If you haven’t had a CMA done for your property in the last year, contact us today and we’ll provide you with a complimentary Comparative Market Analysis. Once you know what your home could list for, you’ll also want to get your home ready for sale – click here to gour our Checklist for Home Sellers.