A C.M.A. (Comparative Market Analysis) is the most commonly used approach to determining market value of single family residential property. The C.M.A. is based upon the theory that a Buyer is not likely to pay more for a home than said Buyer can purchase a comparable home for. We locate 3 sold properties that are comparable to your property, (Subject Property). Ideally these homes should be located in the same subdivision, be about the same size, with similar amenities, and have sold within the past 3 months.

Since it is rare that one would find a property identical to the Subject Property, adjustments are made to the comparable sold properties to make them equal to the Subject Property.

Example: The Subject Property has a fireplace but sold comparable #1 does not.

To make the comparable equal to the Subject Property you must "give" the comparable sold property a fireplace. Of course you don't actually install a fireplace, you make a dollar adjustment. Adjustments are made in those areas perceived by the Buyers to add value to a property. Many items are taken into account: year built, type of construction, and amenities among other things. Your home's actual selling price may be more or less than the CMA (Comparative Market Analysis) indicated value.

The C.M.A. is only a guide to market value, not an exact science. The agent's experience in the market area is vital to determining an accurate market value. This allows your home to be a well-priced listing among the many homes in this competitive market.