House hunting is exciting, but the process of purchasing a new home can also be nerve-wracking. In a seller’s market, many buyers will find a house they really like, but then become anxious as they are not sure if their offer will be accepted by the seller.
How can you have the upper hand when it comes to bidding?
Home buyers that review a comparative market analysis from our agents have an advantage in the home buying process. The CMA gives home buyers a better idea of the value of the home. Even if you’re looking at new construction homes for sale in Windsor Island Resort, you can still use a CMA. Here’s how it works.
What is a CMA?
A CMA pulls data from surrounding properties and compares the information of each against the desired home. Having a CMA prepared allows you as the buyer to know whether the house you’re considering is truly worth its set price. By knowing its worth, you will also have an advantage in giving a competitive offer and being taken seriously.
You can think of a CMA like an informal appraisal. However, unlike an appraisal, you do not need a licensed appraiser to conduct a CMA. Rather, a real estate agent can prepare one for you.
Where does the data come from?
CMA reports gather data from several nearby homes (about three to five). Often, the homes used in the analysis are from the same neighborhood or subdivision of the desired property. The data collected on these properties generally includes, but isn’t limited to:
- The location of each home
- When the house was built
- The size of each property
- Individual sales price and fair market value
- Differing details between properties
The CMA also takes other factors into account like the construction of the home, the condition it is in, the style, and other surrounding attractions of the location. Some of these details may include features like whether the home has a pool and how close it may be to a golf club. Ideally, a CMA should use recent data from properties that are either active or have been sold within two to three months of your current search. Generally, these properties will also be active on the market, but it is common for CMA reports to include listings that are pending, sold, or withdrawn.
Why you should always use a CMA
If you don’t know the value of the home you want, you’re less likely to place the right offer. Using a CMA provides you with the competitive edge you need to get your foot in the door to get to closing. Keep in mind, your final price may need to be adjusted, depending on how the outcome of the appraisal and also on the market.
It’s important to remember that a CMA is not the same as getting an appraisal. A CMA will give you the competitive edge you need to beat out any other offers on your dream home, while an appraisal will help you land the final price on your home. As we mentioned before, having a CMA will allow you to prepare an offer that is realistic for the home you want while remaining within your budget.
In summary, a CMA provides you with the value of the surrounding neighborhood and the proper value of the home you are interested in. By taking these price points into consideration, you can then adjust your budget as needed and place your offer.
Let us help you find your dream home
Contact us today to speak to one of our friendly, knowledgeable real estate agents.