![]() ![]() Location: Homes used as comps are often in the same school district, within the same neighborhood, and with similar surrounding areas-for example, if the home being evaluated is on a quiet cul de sac, the best comps should be too. Sold Date: A comparable home is often sold within the last three to six months, or within the last year in rural areas. Your agent will compile comps based on the following criteria in order to prepare a comparative market analysis for you: It's been recently updated with new paint, new finishes and fresh landscaping. It's a three-bedroom, two-bathroom single family home in the city, in a good school district, with low HOA fees (under $100 per month). Let's say you’re interested in purchasing a home that's currently listed for $230,000. If your agent can get details on the contract price of a pending listing, rather than the public list price, then the home might be used as a comparable property.ĭeactivated listings: Again, since there's no way of knowing what a buyer would actually pay, your agent will likely avoid homes recently pulled off the market. ![]() Pending listings: The same goes for pending listings - they aren't a sound indicator of a home's value, since the deal isn't yet finalized. Here are homes that will likely be omitted from a CMA:Īctive listings: Homes currently on the market could be mispriced, so there's no way of knowing a home's true value until it's sold. However, in rural areas or slower real estate markets it can be challenging to find recently sold comps. The most accurate comparable homes are typically sold within the past three to six months. What's included in a real estate CMA?ĬMAs should include descriptions and data points for the comparable properties (called 'comps' for short) that help inform the fair market value of the home being evaluated. CMAs are also used by sellers to help determine an accurate listing price. The report analyzes three or more recently sold properties similar to the home in question, usually chosen based on their similarities in size, location, age and quality.ĬMAs are a valuable tool that buyers can use to ensure they're making a competitive offer on a home. A comparative market analysis, commonly abbreviated as CMA, is a report prepared by a real estate agent to help a client determine the value of a home.
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