What Is a Comparative Market Analysis or CMA?
It’s how real estate professionals determine Blue Mountains home prices
A comparative market analysis (or CMA) is an estimate of what your property is worth based on features of similar properties and their recent selling prices. Property appraisals and assessments for taxes have different methodologies compared to a CMA, which is intended for marketing.
A CMA is really intended as a starting point to market a home. Current market conditions determine the final selling price when a motivated buyer and a motivated seller reach an agreement on price.
Comparable properties usually have similar styles, sizes, rooms, and neighbourhood. Depending on the market, Blue Mountains home prices may be higher or lower than comparable properties in neighbouring communities. Sometimes, a unique property may have few or no comparables in which case the sales representative may choose to have a formal appraisal done.
A CMA will usually include three examples each of active, cancelled or expired, and sold listings. This will indicate a range of Blue Mountains home prices and allow us to have a clear picture of trends. Together, we’ll be able to make a sound decision on the initial asking price for your home.
How does listing price affect time on market?
Luxury homes and special properties may require a longer marketing period to ensure the advertising reaches the greatest number of potential buyers. Most homes will sell 30-60 days after they are posted to MLS®.
A price that is higher or lower than comparable Blue Mountains home prices can create a disadvantage to the seller. It’s important to list and market your home at the right price, at the right time of year, to the right buyers. This ensures that you’ll receive the best possible price in the shortest period of time.
Please contact me with your questions about Blue Mountains home prices. I am always available to take your call or respond to email and texts.