What you should know about a Comparative Market Analysis (CMAs).
As part of the listing process, many agents prepare a Comparative Market Analysis
(known in the industry as a CMA) to help establish a realistic price range for a home. Although the format varies somewhat with each company and from agent to agent, a CMA is basically a written report on your Ottawa home that contains property profiles of homes in the area which compare closely to yours. Included in the study are homes currently listed for sale, recently sold properties and properties which did not sell during the listing period. Sometimes certain amenities, additions and/or improvements are also considered.
The key to remember about a CMA is that if properly researched, it will give you the hard numbers necessary to reach a realistic pricing decision. The price range you get from an agent using a CMA may well be lower than what you get from agents who don't use one. But when a CMA is used to determine the asking price of a home, the final sale price is usually closer to the CMA price, than a price determined without the use of a CMA. Another important benefit of using a CMA is that when a home is priced properly, it will usually sell faster.
What did the house next door sell for?: a CMA will show you the current selling prices in your neighborhood.
What should we price our house at?: a CMA will show you the range your listing price should be in.
What is in it for me?: if a CMA is done on your home and then used with an Estimate of Selling Costs, a reasonably accurate estimate of proceeds to you is determined.