Are CMA's Just For Sellers?

Not at all! They are for buyers as well!

First, a CMA is a comparative (or "competitive", depending on who you ask) market analysis --- or, an analysis that compares one property (the "subject property") to other similar properties that have either recently sold, or are on the market. As I explain to my clients, my CMA's attempt to account for all significant aspects and characteristics of a home including square footage, functional space,age, style, condition, and more.

Why would a buyer want a CMA? When making a purchase offer, sometimes buyers determine price based on what they think the seller will accept, or what would be a reasonable offer given the asking price. Ignore the asking price! That's not to say that all offers should be low offers trying to "make a deal", but consider these two examples:

1. House is worth $200,000, but listed at $250,000. Buyers try to negotiate 10% off, and offer $225,000. Negotiations fizzle.
2. House is worth $200,000 and listed at $195,000. Buyers try to negotiate 10% off, and offer $175,500. Another buyer comes along and buys the house for $193,000.

This illustrates the great need for a buyer to understand the segment (location, price, etc) of the market in which they are buying. Once a buyer has settled on a particular property, an great way to provide the buyer a context for making an offer is to perform a CMA, to compare the property to similar, recently sold homes.