The appraisal of a property is performed in several different ways. Comparative Market Analysis (CMA) used by real estate agents is one method of arriving at a listing price. The CMA is an instrument for marketing a home or commercial property, and allows an owner to dictate the terms to real property value on a competitive market.
Valuation of a property in CMA analysis is distinct from quick appraisal methods use by lenders. The performance of CMA comparison may require up to six property valuations to establish a reasonable listing price on a property.
Estimated CMA listing prices are generally near the same value as a mortgage loan appraisal. CMA is applied to consideration of second mortgage applications for refinancing of a property. Second mortgage loan agreements review CMA reporting to determine if the value of a property is worth funding for payment restructuring, rehabilitation, or equity or cash out on an original loan.
Preparation of the CMA Report
CMA pricing is based on a continuum of value, rather than fixed asset pricing. Comparison of active, pending, expired, and sold listings is key to listing price calibration. Preparation of the CMA report begins with comparison analysis of nearby properties.
Agents’ source data about a property from land title records, as well as the industry’s Multiple Listing System (MLS). The MLS offers aggregate and indexed valuation on property prices across a city and in its neighborhoods. CMA analysis addresses public record, market value, as well as a number of dependent variables impacting the listing price.
Selection of an Agent
The role of a property agent is to provide a property owner a CMA price index. The selection of a listing agent is often prefaced by a comparison a few CMA reports submitted by competitive agents.
In addition to conformance to industry standards in CMA analysis, agents may decide to add value to a report in valuation of more than three similar properties in preparation of price estimation. Once a CMA has been performed, a property owner can make a decision whether to sell a property.
Selection of a real estate agent post review of a CMA report allows an owner to evaluate the competency and precision of an agent’s expertise in economic valuation and financial transaction. The CMA is the main source of information looked at by potential buyers. Agents that approach an owner with a strong CMA presentation will also be more proficient in bringing a property to final sale.
CMA Benefits for Property Owners
Nashville, TN property owners can attain more value for money with CMA. These reports acn also be used when considering refinancing options for your current home.
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