The acronym CMA stands for Comparative Market Analysis. This is a report that is done by Realtors for Sellers and often Buyers too. The CMA for a Seller will provide vital information as to how they should price their home for sale to be competitive in the current market. This report can also be used by Buyers as a means to view current pricing on other comparable homes for sale before they make their offer.
First the CMA will display the Active Homes currently for sale, which shows the current competition.
A CMA will also show homes that are currently Pending or under contract. This is also helpful information to have for although you may not yet know what price was offered for these homes it will show you the prices that did stimulate interest.
The CMA will contain recent Expired Listings. These are the homes that did not sell during the time they were listed. There are many reasons for a listing to expire, the most common being it was over priced. When a home comes onto the market over priced they will often have a difficult time catching up with the market, will then languish and remain unsold.
Finally, a CMA will display homes similar to the subject property that have SOLD recently. How many days they were on the market. What was the list price and what was the Selling price, providing other helpful information also.
Now having all this information at your fingertips both Buyers and Sellers can make good informed decisions for themselves….for Sellers, at what price will they want to List their home for sale and for Buyers…. how much money are they willing to pay for any given home?