What is a CMA? A Comparative Market Analysis evaluates homes that have been sold recently and are similar to yours (comps). This information is gathered by real estate agents from the multiple listing service (MLS), which pools information from other agents on for-sale listings.
A competitive marketing analysis is done by looking at homes that are similar to yours in terms of size and features. CMAs list properties that are currently on the market, pending sales, sold properties, and expired properties. The CMA will also include the low, median, and high price of your home, as well as the average and median days on the market you can expect for your home. Despite the fact that it's not an exact science, it is still a bit of fine art to know exactly what a home should be listed at. You should get a fairly accurate figure from a CMA regarding what a proper list price is.
This can help you answer the question, "What is my house worth"? Once we know how much your home is worth, we can tell you How Much Will I Make Selling My House?
A key point to remember is that the MLS is only available to real estate agents, which makes listing your home FSBO (for sale by owner) difficult.
Yes, a current CMA is a priceless piece of information that we would recommend in every situation. The good news is if you are wondering how much does a comparative market analysis cost? As Professional licensed Realtors that can provide you a Detail CMA for free!
Do you BPO, we can provide one of those as well for a small fee. See Below.
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Get a complimentary Comparative Market Analysis today by contacting The Gifford Group.
Yes, a current CMA is a priceless piece of information that we would recommend in every situation.
The good news is if you are wondering how much does a comparative market analysis cost?
As Professional licensed Realtors that can provide you a Detail CMA for free!
A Comparative Market Analysis (CMA) shows the prices of comparable sales of houses in the neighborhood and would be a starting point to determine the value of your home.
We are real estate agents that will take the CMA along with other information about your house to help determine the price.
Today we talk about a CMA vs home appraisal. We go into the differences and why we recommend the Market analysis first!
We break down what a CMA ( Comparative Market Analysis) looks at.
How can a CMA change over time? How much an appraisal will cost you? When can we use the appraisal?
Professional REALTORS® prepare a Comparative Market Analysis (CMA) when listing properties for Sellers. Additionally, when a fully executed Buyer Representation Agreement is in place, we do this for Buyers in order to determine the estimated purchase price.
A BPO is less expensive but less detailed than an appraisal prepared by a State Certified General Appraiser or State Licensed Residential Appraiser.
The following disclosures will be included in all of our CMAs and BPOs as required by law:
“This represents an estimated sale price for this property. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice.”
Real estate license holders can offer an estimated sale price, listing price, or estimated worth.
BPOs and CMAs are not appraisals. Appraisals may only be completed by someone who is licensed or certified as an appraiser. An appraisal usually runs around $500-$700.
We you need an appraisal for in order to get a new loan, we can help!
See more below.
After we complete the BPO, if your property is exclusively listed for sale (without named buyer exclusions) within 21 days, the Fee will be refunded.
Should you, as a buyer, enter into a written Buyer Representation Agreement with us, you will be reimbursed for the Fee when you purchase the evaluated property at Closing.
What's the difference?
Broker Price Opinions (BPO)
Today we talk about the best way to determine the value of your home and 3 other ways to find the value of your home.
We talk about the difference between the CMA vs appraisals. Which one should you use?
Right now, online home estimators are the rage. A home's value is estimated using algorithms, data from websites sites, and official records. They are free to use. You just need to enter your house address in the search bar on the site, and you'll get an estimate immediately.
Online estimators can only be accurate to a certain extent. Their results might be close to the market value or they might be way off!
"Zestimates" might be a great starting point to get “in the range.”
The accuracy of online housing data in larger cities tends to be higher. But if you have watched the news this past year, you will see how Zillow has gotten out of the home buying business since they were using the calculation to estimate the value of homes they were hoping to flip.
Zillow lost more than $421,000,000 as the computerized "zestimate" are not as accurate as actually putting eyes on the property and taking a deep dive into what your home is actually worth compared to those true comps. For example, a home that is a few blocks over in a different neighborhood could be worth thousands less than your home even it is the same size because of the quality of materials, the size of the lot, or the school district it is zoned to.
Opendoor complaints? Should I sell my house to Opendoor?
A traditional realtor puts your house on the market and lets buyers bid on it, so it's possible you'll get less money for the house when you sell to an iBuyer instead.
OpenDoor has agreed to pay $62 million to settle charges by the Federal Trade Commission, which says the company’s claims that it helps people make more money by selling their house to the company rather than listing it on the open market were deceptive.
Additionally, you'll likely pay more in transaction costs than if you used a traditional realtor. Realtors charge about 6 percent, while iBuyers charge 7.5 percent or more. On their websites, the standard fee is listed as 7.5 percent, but the exact fee will be communicated to you during the process. According to their own website, it could be as high as 14%!
An investigation by MarketWatch of multiple transactions involving iBuyers shows that their offers bring in 11% less revenue than those of owners who choose to sell their homes on the open market, translating into a loss of tens of thousands of dollars.
Opendoor, reports massive losses as well! $662 million in 2021.
The Gifford Group can also help you buy before you sell.
Get preapproved to buy today!
Pricing should not be based on Zestimates.
Despite the fact that these online calculators provide you with a value, don't consider them the end-all and be-all. Think of the values as a starting point.
Current market metrics such as showing activity and the number of direct competitors (other current listings) are not taken into account by the Zestimate algorithm.
Local professionals, The Gifford Group, do account for these important variables when determining list prices. Additionally, in today's market, it is common to set the list price at the low end of the market range in order to attract multiple buyers, who then bid against one another, ultimately establishing a value that is at the high end of the range or establishing a new range altogether.
There are other ibuyers out there that want to take advantage of your lack of knowledge of your home's true value and buy it from you and then turn around and sell it for top dollar
Get your free Comparative Market analysis done by a local expert.
Looking to sell your home fasters and for more money? Read our blog post that features 9 Tips to sell your home faster.
Don't be a victim to Zillow.
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Amber Gifford, Trec Lic. #0732687
Scotty Gifford TREC Lic. #0740987
Scotty Gifford NMLS ID # 2357310
Broker is FYI Realty Katy. INVEST IN YOUR FUTURE
We also have a Humble office, FYI Realty Humble
Broker is FYI REALTY, Lender is MiMutual Mortgage