A Comparative Market Analysis, or CMA, is a valuable report that a real estate broker can produce for their clients to evaluate the home’s value based on similar, recently closed homes. Accuracy is key to provide true value for your clients. This is especially true when inventory is tight, as you want to price listings accurately.
Why an Accurate CMA Matters
We all know a CMA is important. But is your data really as accurate as it could be? The tool you use can determine the accuracy of the CMA product you produce.
An accurate CMA takes time. Many professionals start by doing extensive research on the property. When it’s time to pick comparable area properties, it’s also good to do some research on the CMA tool you plan to use.
Pro Tip: We recommend REcolorado Matrix MLS. The CMA tool is built in! Plus, REcolorado has the most complete listing data available, powered by more than 26,000 real estate professionals.
Typically, the more manual the process is, the better. Yep, we said it. And it’s the truth! Be leery of an “easy” button. How does that system pick its comps? You might not know. Were you able to review and account for every little difference?
You might be thinking, “But an easy button is good enough, right? They have to have narrowed it down to an exact science by now.” Unfortunately, the truth is “Eh, not likely.”
That’s not to say quick CMAs don’t have their place, because they do. Perhaps you’re looking at properties with a client and they have a last-minute request. It’s handy to generate an off-the-cuff report, but it’s unlikely you’d want to use it to make your final pricing decision or something you’d want to give your appraiser.
You’re the Expert
Every real estate market is different. And, right now, Denver is arguably one of the most challenging in the country. You’ve positioned yourself as a source of expert knowledge for your clients. You’ll tell them the number they should pay for their dream home or the specific price point at which they should list, and they’ll trust you. Don’t settle for something that could be less than accurate. When you’re ready to put together your next CMA, be sure to allow yourself enough time to really dig in and get it right.
REcolorado Learning Path: CMA and Pricing