A comparative market analysis (CMA) is a professionally prepared estimate of how much a particular home is currently worth. It indicates the price a ready and able buyer would most likely be willing to pay, considering the amount and quality of competing inventory and overall market conditions.
Recent Sales
Comparable properties are typically homes that have sold within the past 6 to 12 months. If the market is changing rapidly, the focus will be on those that have closed during the last three or four months. The final prices of recent neighbourhood sales – especially those most similar in location, square footage, lot size, age, style and condition – justify the value of the subject property and will also be used when it is formally appraised.
Active Listings
These are homes that are currently for sale. Remember that the listed sales price represents what the seller is asking for and may or may not be in line with the real market value. How a home is priced relative to other available listings will usually determine the length of time it will stay on the market.
Pending Sales
The final sales price often remains private until after the transaction closes, but looking at the number and types of listings that are under contract can offer clues about current conditions and which direction the market is heading.
Expired, Withdrawn or Cancelled Listings
These are properties that were taken off the market or did not sell during the listing period, possibly because they were priced too high. Analyzing this data could help you avoid the consequences of overpricing your home.
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