What is a (CMA) comparative market analysis?
A Comparative Market Analysis (CMA) is an evaluation of similar, recently sold homes (called comparables or comps) that are near a home or homes that you want to buy or sell. Buyers, sellers, or real estate agents perform a CMA report to establish and find a fair price range for the home the report is created for. The price range from the CMA can then be used as a guide to be used for establishing an offer price or a listing price.
Basically, performing a CMA involves finding the homes that are similar to the home under consideration, and creating an in-depth comparison of its size, age, location, and features of the home. It all comes down to one question: compared to other, comparable homes in this area, how much is this home worth? Answering that question involves looking at a fair amount of data on other homes in the current market.
The process for doing a comparative market analysis includes:
Defining criteria for selecting comparables in close range to the home
- Determine a list of quality comparables
- Evaluate the comparables within close range to the home
- Adjust comparable values for differences in size, condition, location, amenities, etc
- Estimate the ideal value of your target home based off the findings
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To calculate your general affordability range, take into account items, such as your household income, monthly debts and the amount of available savings for a down payment. It’s important to have an understanding of your monthly mortgage payments.
Use this calculator to determine how much house you can afford. You can estimate the mortgage amount that comfortably fits your monthly budget.
Thinking to sell or refinance?
Use our free home value tool to get an estimated valuation of your home. We compare various property characteristics and sales history to help give you an idea of how much your home could sell for in today’s market.