A CMA is used by real estate agents to determine the fair market value of a home before offering it for sale. Methods for efficiently finishing a CMA are as follows:
Collect Relevant Data About the Property
Gather as much data as possible on the property at hand, such as its square footage, lot size, number of bedrooms, condition, and age since its last major refurbishment.
Search for and evaluate residences that are similar to the one you’re interested in because it’s sometimes impossible to find similar homes within a 2-mile radius. Therefore, it’s necessary to broaden the scope of the search to at least five miles around. When picking comparables, it’s important to think about things like age, location, and condition. Due to the lack of a “track record,” it can be more challenging to find comparable properties for newly built homes. While this may be the case, it is still possible to arrive at fair estimates.
Adjust the comparables such that they are reflective of the subject property’s attributes through analysis. Then, if you find any major differences between your subject property and the comps you found, you can revise your estimate. Alterations could consist of things like more bathrooms or square footage.
Calculate an approximation of the value of the subject property by using the sales of recently similar homes that have been similarly improved. This estimate needs to consider both the current market and the home’s unique characteristics.
Compile a list of properties like the one the client is interested in, along with a range of values to use in setting a price. Give the customer an itemized list of all similar properties utilized in the CMA and their relative valuations, as well as a range in which you believe their home could sell for.
