Term Tuesday: CMA

Image via Renjith Krishnan

A comparative market analysis, commonly referred to as a CMA, is a report created by a real estate agent to estimate a home's value. This method takes the following into account:

• Current active properties and how long they've been on the market
• Recent solds, generally within 90 days of the close of escrow
• Homes that were listed but did not sell

The homes chosen for comparison are of a close match to the subject property. For example, they will be similar in terms of age, square footage, lot size and amenities, such as a pool or view. Comparable properties may have their value "adjusted" if they are lacking features of the subject property, or if they have a feature the subject property does not. A pool, for instance, is generally valued as +/- $10,000.

Your agent will create a CMA both to help you gauge the value of your own home when preparing to sell or a home that you are considering to help you determine a fair offer price.