CMA stands for comparative market analysis, which is an evaluation your property’s value based on local market data. This evaluation is usually prepared by real estate sales representatives who are looking to determine the potential sales price for a property. I also prepare CMAs to help my buyer clients decide on an offer price.
When preparing a CMA, I analyze listing and sales data provided by the Toronto Real Estate Board of similar properties (comparables) in the area. Specifically, this includes information about:
- Properties that have sold.
- Properties currently for sale
- Expired listings – properties that did not sell during the listing period
The most helpful information comes from homes for which the sale has either already closed or is pending. Homes currently for sale help me gauge the pricing position of competing properties and expired listings (homes that never sold during their contractual period) can indicate properties that were priced too high. Of course, you need to remember that there may be other factors involved in the failure of those properties to sell.
I choose properties that are recent and have as many similar attributes to yours. From here, I can compare and contrast these homes to yours and, in a fully documented report delivered to you, arrive at a suggested price range. I’ll explain my results and we’ll discuss current market trends that may affect the asking price of your home. Then, it’s up to you. You decide the list price!