Are you somewhat mystified by looking at a CMA, aka Comparable Market Analysis? Since this packet can be lengthy and contain lots of information (and can be a bit tedious) we wanted to sit down and go over it with our viewers.
So what is a CMA? Essentially, it is a list of properties comparable to yours- we usually call these "comps." Comps should be located in the same neighborhood and share many of the same traits- square footage, number of bedrooms, garage or basement, and property condition to name a few. Comps should also be sold fairly recently since the real estate market is always changing. Your own home's price today is probably not the same as it was 4 years ago, so you should not be looking at comps that old in a CMA.
When a list of these comps is compiled by your real estate agent, you now have a CMA. These comps can now be analyzed to determine a ballpark figure for your home's price.
It should be noted that some homes won't have true comps. This is true if they are especially unique. For example, a South Shore home we listed last year had 4 bedrooms and a pool. This combination is so rare in Staten Island, it would be difficult to find a recently sold home with the same specs.
In this Facebook live video with RealEstateSINY.com's broker/co-owner Anthony Licciardello, PR Director Hannah Jay interviews Anthony and together they break down how you can interpret a CMA the right way. Our casual discussion has been transcribed above via Youtube to view in full.
Join us to hear the answers to these questions and hopefully learn something new!
Go over the three categories of comps on a CMA and why they are significant: active, pending, sold, and expired
How are the comps selected? I.e. distance, traffic, aesthetics of block, condition of home
What is the difference between CMAs and appraisal?
What is the most confusing thing about reading CMAs?
Marketing driving value
Comps are acting as if all are equal
What is the biggest misconception regarding CMAs?