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What is a CMA and Why Do You Need One?
CMA is real estate lingo for "Comparative Market Analysis." A CMA is a report prepared by a real estate agent providing information comparing your property to similar properties in the same marketplace.
The first thing an agent must do to provide you with a CMA is to inspect your property. Generally, this inspection won't be overly detailed, nor does the house need to be totally cleaned up and ready to show buyers. It should be in such a condition that the agent will be able to make an accurate assessment of its condition and worth. If you plan to make any changes before selling, you should inform the agent at this time.
The next step is for the agent to obtain data on comparable properties. This data is available through the MLS (Multiple Listing Service), but a qualified agent will also know of properties that are on the market or have sold without being on the MLS. This will give the agent an idea how much your property is worth in the current real estate market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.
The CMA process should take place before your home is listed for sale, but can also be done during the listing period. This is a good assessment of what your house could potentially sell for if all market conditions stay the same.
