How Agents Use Competitive Market Analysis (CMA) to Price Your Home

If you’re buying or selling a home, you might’ve wondered how sellers and agents determine a listing price. A Competitive Market Analysis helps estimate a property’s value by comparing it to similar homes that have sold. This tool serves as a guide to help you and your agent determine how to price a home. Today, we’ll explore how real estate agents use data from a CMA to help price your home.

What is a CMA in Real Estate?

A CMA in real estate refers to a report on the sales of homes similar to the one you’re selling in your area. Also known as a Competitive Market Analysis, a CMA serves as a valuable tool to estimate a property’s worth. Think of a CMA as a guideline that helps your real estate agent develop a competitive approach to list your home for sale. A Competitive Market Analysis may take into account several factors, such as the age of a home and its location.

For sellers, a CMA offers insightful data to ensure their home is not priced too low, leaving money on the table. At the same time, pricing a home fairly ensures it will sell quickly (which might be especially important to sellers looking to purchase a new home).

How to Price a Home With a Competitive Market Analysis 

Before listing a home for sale, real estate agents use a Competitive Market Analysis to establish an effective pricing strategy. This starts with your agent performing research to determine the sale price of comparable homes that have sold within the last three to six months. 

Often, your agent will look for homes with similar specifications, such as square footage, location, school district, and condition. Agents sometimes refer to these as “comps,” meaning that they are comparable.

The next part of a CMA in real estate involves analyzing the sale of these comps as it relates to the home you want to sell. For example, an agent may look at individual components of a home, such as upgrades, to determine a listing price. 

Other Factors that Impact Home Pricing

Agents will also determine a Fair Market Value for your home, using data to create a listing price. Your agent may also consider other factors, such as the state of the housing market and other current listings, to determine the price to list your home. Using an experienced real estate agent like Mike Ciunci can streamline the stress that comes along with deciding how to price a home. 

Selling Your West Chester, PA Real Estate

Are you looking to sell your West Chester, PA real estate? Contact Mike Ciunci to establish a competitive price for your home using a competitive market analysis. Mike’s extensive experience selling homes in the area, combined with valuable data from a CMA, can help you price your home to sell. Contact Mike Ciunci to buy or sell a home in West Chester today!