How to Interpret a Comparative Market Analysis (CMA)
Whether you’re selling your home or just curious about its value, a Comparative Market Analysis (CMA) is one of the most powerful tools in real estate. As a professional realtor in the Myrtle Beach Grand Strand, I create CMAs regularly to help sellers price their homes competitively and help buyers determine if a listing is fairly priced.
But if you’ve ever looked at a CMA, you know—it’s a lot of numbers. So, how do you make sense of it? Let me break it down for you in simple terms.
What Is a CMA?
A Comparative Market Analysis is a report that evaluates recent home sales, active listings, and expired listings to estimate a home’s market value. Unlike a Zestimate or an automated valuation, a CMA is customized to your property and local market conditions, making it much more reliable.
What’s Included in a CMA?
1. Recently Sold Homes (Comps)
The most important part of a CMA is the recently sold homes, also known as “comparables” or “comps.” These are homes similar to yours (in size, location, and features) that have sold in the past 3-6 months.
• Example: If you own a 3-bedroom home in Myrtle Beach, I’ll compare it to other 3-bedroom homes in the same neighborhood that have recently sold.
• Why it matters: This tells us what buyers are willing to pay right now—not just what sellers hope to get.
2. Active Listings (Your Competition)
A CMA also includes homes currently for sale in your area. While these listings show your competition, they don’t tell us what buyers will pay—only what sellers want.
• Example: If similar homes have been on the market for months without offers, that’s a sign that their prices might be too high.
3. Expired and Withdrawn Listings (Overpriced Homes)
Ever wonder why some homes don’t sell? A CMA looks at expired and withdrawn listings, which often means the home was overpriced or had other issues.
• Why it matters: If a home like yours was listed for $400,000 but never sold, we know buyers weren’t willing to pay that price.
4. Adjustments for Differences
No two homes are identical, so we adjust prices based on differences. We add value if your home has a newly renovated kitchen but a comp doesn’t, and we subtract value if another home has a pool and yours doesn’t.
How to Use a CMA to Price Your Home
Pricing is both an art and a science. A well-prepared CMA helps sellers set the right price to attract buyers while maximizing profit.
Example:
I once had a seller in Murrells Inlet who wanted to price their home at $500,000 because a neighbor’s house was listed for that amount. But after looking at the CMA, we saw that similar homes actually sold for $470,000-$480,000. Pricing at $499,000 would have been too high, leading to months on the market with price reductions. Instead, we listed at $479,900 and sold within two weeks!
For Buyers:
A CMA helps you know if a home is fairly priced. If a house is listed for $350,000, but the comps suggest a fair market value of $330,000, that’s a great reason to negotiate!
Final Thoughts: Trust the CMA, Not Just the Asking Price
A well-prepared CMA gives you realistic expectations when buying or selling a home in Myrtle Beach. As your local real estate expert, I analyze these reports daily to help my clients make informed decisions.
If you’d like a free Comparative Market Analysis for your home, let’s connect! Whether you’re considering selling or just curious about your home’s value, I’d love to help.
📩 Contact me today for your personalized CMA!
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