FREE Home Value Report

No two homes are identical, which is why choosing a sales price or offer price for a
home can be challenging. That’s where the comparative market analysis, or CMA, is
most useful.

What is a CMA? The CMA is a side-by-side comparison of homes for sale and homes that have recently
sold in the same neighborhood and price range. This information is further sorted by data
such as type of home, number of bedrooms, number of baths, lot size, neighborhood,
property condition and features, and many other factors. The purpose is to show
estimated market value, based on what other buyers and sellers have determined through
past sales, pending sales and homes recently put on the market.

How is the CMA created?
CMAs are generated by using property information from your real estate agent’s multiple
listing service (MLS). The MLS is available to licensed members only, including brokers,
salespeople, and appraisers, who pay dues to gain access to the service’s public and
proprietary data, including tax roll information, sold transactions, and listings input by all
cooperating MLS members. Listing agents generate CMAs for their sellers, and buyer’s
agents create them for their buyers so both sides know what current market conditions are
for the homes they’re interested in comparing.

How accurate are CMAs?
The CMA is a here-and-now snapshot of the market, based on the most recent data
available, but it can instantly be rendered obsolete by a new listing, or a change of status in a home with the same criteria. Why? The market is constantly changing – new listings, pending sales, closed sales, price reductions, and expired listings. CMAs can vary widely, depending on the knowledge and skill of the person creating the CMA as well as the number and type of data fields that are chosen. That means some
features may not be included. As informative as the CMA is, it should only be used as a tool and should not substitute for your real estate professional’s knowledge and advice.

The Value of Your Home
In a neighborhood of similar homes, why is one worth more than another? That’s the question that’s teased buyers and sellers for ages, but the answer is simple. Every home is different. When a home is sold, a willing seller and a willing buyer determine the value of that home with the sale price. That price then becomes a benchmark for other similar homes, but other factors come into play.

The most important are:

Location
The closer a home is to jobs, parks, transportation, schools, and community services, the more desirable it is.

Size
Square footage impacts home value because a larger home is built using more materials, and gives the homeowner more
usable space. And a larger lot size could mean more privacy than a smaller one.

Number of bedrooms and baths

Additional bedrooms and bathrooms raise the value of a home compared to similar homes that do not have those rooms.

Features and finishes
Features such as outdoor kitchens and spa baths make a home more luxurious. A home finished with hardwood floors and granite countertops is going to cost more than a home with carpet and laminate countertops.

Condition
The closer a home is to new construction, the more it will retain its value. It’s perceived as more modern, up to date, and perhaps safer. Homes that are not updated or in poor repair sell for less as purchasers’ factor in the cost of updating and eventually replacing appliances and systems.

Curb appeal
From the street, the home looks clean, fresh, and inviting. Fresh landscaping and flowers won’t change the size or location,
but they certainly add charm.
When two homes are identical in the same neighborhood, a higher price may come down to something as simple as
views, paint colors, or the overall taste of the homeowner