When you’re buying or selling central Florida real estate, you need to have a good sense of the market. A comparative market analysis, or a CMA, can provide a snapshot of the local market and tell you what to expect in terms of prices and competition. Today, we’re talking about how to select and analyze the data that will be most important for you.
Comparative Market Analysis and Pricing
One of the reasons you need a CMA is to understand pricing. The information in a CMA is generated from the Multiple Listing Service (MLS). These reports will help sellers price their property and advise buyers on what kind of an offer to make on a home they like.
Comparative Market Analysis Search Parameters
The information you receive will vary, depending on the search parameters that are used. Results will be impacted by whether you’re looking at detached or attached properties, the postal code or neighborhood, the number of bedrooms and bathrooms, and square footage. All the criteria that’s used will produce a CMA that’s specific to those parameters.
You can access data about the homes that have recently sold. Check the properties that were sold in the last six months, three months, or even one month. You can look at the homes currently on the market and set the price range that matters to you. Not all the criteria you want will be part of the CMA parameters. For example, if you want a property with an ocean view, there may not be a way to search for that. But, the listing agent can include specifics in the remarks section.
How Results Can Vary with CMAs
You might get different CMA results even when you compare two identical homes. Maybe that’s because one property has better curb appeal or is in better condition. That will always be reflected in the sales price. It’s also important to remember that you can’t really quantify motivation. Sellers may agree to take less and buyers may agree to pay more. These decisions are affected by family situations, corporate relocations, and sudden changes in financial situation. A CMA can tell you that a seller was highly motivated, but it cannot tell you why.
A CMA is a tool, not a home valuation. A good real estate agent will use a CMA for guidance, but your agent’s knowledge of the market and the competition will be more reliable. If you have any questions about how to conduct a comparative market analysis for your Orlando real estate, please contact us at Legends Realty.