It’s a critical skill for all real estate professionals. Once you know how to do a comparative market analysis, you’ll be able to value homes for any of these reasons. Get homeowners’ property taxes lowered (which is a lucrative income stream on its own, and a unique competitive advantage in almost any market – if you’re new to real estate, consider offering property tax appeal services to help stabilize your income and get in front of potential clients).Establish fair market value rental rates for investor clients. Earn new clients by offering a complimentary home valuation to homeowners who might be interested in selling if they can get a certain price.Help sellers determine a listing price.There are several reasons real estate agents do CMAs. Once you make these adjustments, it’s like you’re comparing apples to apples, and you can find the market value for your subject property. Of course these “comps” aren’t an exact match for your subject property, so you’ll need to make adjustments to the sales prices of the comps to see what the sales prices of those comps would have been if they had been identical to your subject property. When doing a CMA for a home, you’ll find recently-sold properties that are comparable to your subject property. You’ve probably heard the expression “running comps,” right? Running comps is a more fun way to say you’re working on a CMA. A CMA is a tool used to assign a value to residential real estate by comparing the subject property to recent sales of comparable properties. Let’s dive in! What is a CMA in Real Estate?Ī CMA in real estate stands for comparative market analysis (although some markets prefer competitive market analysis). Top CMA providers (and whether they’re worth the expense).In this post, we’ll cover several topics: So consider this your official Intro to CMAs course. And for some insane reason, most pre-license real estate courses don’t cover the CMA process. CMAs are very much a learn-on-the-job skill.īut of course you have to start somewhere. If you don’t know how to do a CMA, don’t worry no one knows how to do a comparative market analysis before getting into real estate. This post may contain affiliate links that allow us to earn a small commission on the products and services we use and recommend.
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