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.
Do the Research
One of your best tools is a CMA. When you first consider the possibility of selling your home, you will undoubtedly have some sense of its value, and at least a ballpark expectation of the price you can ask.
But a comprehensive CMA, will give you a graphic and honest appraisal of local conditions. Month-to-month comparison and previous year statistics for sales, price adjustments, pending sales and withdrawn listings provide insight into trends. Market conditions in Calgary vary from one month to the next and can change dramatically over the course of a year.
Sales statistics also vary from one neighborhood to another, and a volatile market will be affected by outside factors. The CMA, in the hands of a real estate professional, offers an in depth look at local sales, highlights trends, and details factors that benefit sellers and buyers alike.
The CMA can be used as an effective bargaining tool by potential buyers and their real estate agents. Neighborhood values, number of homes currently on the market, turnover, average price, age and demographics are all facts that are useful in the decision-making process.
Analyze the Facts
Depending upon your needs, a market analysis may constitute a simple listing or include a detailed compilation of current listings and asking prices, recent price adjustments, pending contracts and completed sales. Number of days on the market (DOM); the average time between accepted contract and closing, and a comparison of selling price and listing price offer valuable information for both sellers and buyers.
Neighborhood comparisons also offer valuable insights, especially when the statistics reflect relative appreciation rates for older homes vs. new construction, number of cash sales, rental rates and foreclosure/pre-foreclosure rates.
Even though statistics provide factual analysis, some degree of interpretation is inevitable, and resulting conclusions may differ. It is important, therefore, to work with a real estate broker whose experience and judgment you can rely on to give you not only the best information available, but the valuable guidance you require to fulfill your needs.
Professional real estate advisers speak in terms of “ranges,” probabilities and averages. In any real estate transaction, the goal is to walk away with the best deal possible. The information contained in a comprehensive market analysis will help you do that.
Getting ready to buy a home? Make sure you ask these 10 key questions when you submit your mortgage application 1. What is the interest rate on this mortgage? Ask for the lender’s loan estimate, which breaks down the interest rate and fees. It will include the annual percentage rate, or APR, which accounts for […]
Home maintenance isn’t restricted to repairs. In fact, certain tasks–when performed regularly–may actually prevent things from breaking in the first place. But when things do go wrong (and it’s inevitable that they do), we have some backup plans that you can try before you grab the phone to call for pro. Appliances and plumbing are […]
January Market Report! Homes provide shelter and refuge, but they are also most Albertan homeowners’ single largest investment. Housing represents 47% of total assets for the average Alberta family – much higher than stock market investments and pension plans combined (29%). Why is this important? Because homeownership benefits the economy as a whole, as well […]
Buying Secret #10: Keep Your Money Where It Is It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete […]
Winter storms and cold temperatures can be hazardous. Stay safe and healthy by planning ahead. Prepare your home and cars. Prepare for power outages and outdoor activity. Check on older adults. Although winter comes as no surprise, many of us are not ready for its arrival. If you are prepared for the hazards of winter, […]