WHAT IS A CMA?

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 comparable market analysis, or CMA, can be 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 fields such as single-family or condo, number of bedrooms, number of baths, postal codes, and many other factors. Its purpose is to show fair 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 a computer program supplied by 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 inputting the search parameters to the software 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.

 

 

Tips for Buyers

Why You Should Not Make Any Major Credit Purchases
Use a Buyer’s Agent
Thinking About Buying a Foreclosure?
Is Buying a Home Still a Smart Plan?
Importance of Inspection
Hot, Normal, and Cold Markets
Getting a Legitimate Lender and Getting Pre-Approved
Finding the Right Seller
Build a Plan of Action and Get Ready
Avoiding Financial Stress

 

Tips for Sellers

What is a Short Sale Anyway?
Setting the Price
Plan of Action
Making a Good First Impression
Know Why You are Selling
Insist on a Home Inspection
Getting the Highest Price in the Shortest Time
For Sale By Owner - A Good Idea?
Finding the Right Agent
Considering Offers

 

Homeowner Information

Common Ways of Holding Title
Condominium and PUD Ownership
Environmental Issues
Lead Poisoning
Living Trusts
Mechanic’s Liens
Mello-Roos
Radon
Underground Heating Oil Tanks

Understanding Foreclosures

 

Title and Escrow

Why Do You Need Title Insurance?
Understanding Title Insurance
Understanding Preliminary Reports
Title Insurance When Refinancing Your Loan
Title Insurance Requirements for Insuring Trusts
Title Insurance - Where Does Your Dollar Go?
The Functions of an Escrow
Statements of Information
Required Reporting to the I.R.S.
Creative Financing
Closing and Title Costs

 

Mortgage Information

Where Does the Money Come From for Mortgage Loans?
WHAT’S A FICO®?
Types of Mortgage Lenders
The No-Cost Thirty Year Fixed Rate Mortgage
The Biweekly Mortgage - Who Needs It?
The Advantages of Different Types of Mortgage Lenders
Land Contract
Items You Need When Applying For a Loan
FICO® Scores and Your Mortgage
FICO® Score - a Brief Explanation
Documenting Your Assets - Verifying Your Down Payment
Closing Costs When Buying or Refinancing a Home
Adjustable Rate Mortgages - The Basics
Adjustable Rate Mortgages - The PROS & CONS