Definitions for "Comparable Market Analysis"
Keywords:  cma, vicinity, foolish, taurus, ford
An investigation into comparable homes sold in the vicinity of the home to be purchased, which will prove the value of the home. This process is used by the real estate agent to reach a Fair Market Value of the home for the presentation of the Agreement to Purchase Contract, and by the appraiser, verifying the appraised value of the home.
In order to price your house appropriately, you need to know how much houses like yours are selling for. Identify houses "comparable" to yours that sold within the last six months, are in the immediate vicinity of your house, and are as similar as possible to your house in terms of size, age, and condition. By analyzing the asking prices of houses comparable to yours that are currently on the market, you can see whether prices are rising, flat, or declining. A written analysis of comparable houses currently being offered for sale and comparable houses that sold in the past six months is called a comparable market analysis (CMA).
Buying a Ford Taurus from the first dealer that you visit would be impulsive and foolish. You need to shop around to find out where the best deal on that type of car is. The same is true with home buying. If you are interested in buying a home, you need to find out how much money houses in the area have been selling for. You must identify "comparable" homes that have sold within the last six months, are in the immediate vicinity of the home that you desire to purchase, and are as similar as possible to the one that you're interested in buying in terms of size, age, and condition. You must do the same thing for comparable houses currently on the market to see if prices are rising, flat, or falling. A written analysis of comparable houses currently being offered for sale and comparable houses sold in the past six months is called a comparable market analysis (CMA).