In all likelihood, you are familiar with the term CMA in relation to establishing an accurate sales price for a property. But did you know that a CMA is probably the most useful tool available to a Buyer?
First, let us explain a little about the Competitive Market Analysis. A CMA uses straightforward, unbiased information. It incorporates facts about similar properties, recently sold, adjusted for location, size, and amenities, with a continual re-evaluation of nuances in the market.
So how does this affect you as a Buyer? Consider for a moment that you are making an offer on the home of your dreams... without a CMA. How do you know that your offer is not too low, risking rejection or the seller’s acceptance of another buyer’s contract? Or will your offer be too high, robbing you of valuable equity right from the get-go? Has a property in the same neighborhood sold very recently, and if so what effect does that have on the listing price of the home that you’re considering? Perhaps most importantly, what will the appraiser’s conclusion be, and what impact will that have on a contract that you already have in place?
A good Buyer’s Agent will use the results of a detailed CMA in conjunction with your needs and wishes, to assist you in making an offer that will be both prudent and advantageous for you, while ensuring that it will hold it’s own against other bids, in the eyes of a seller.