CMA stands for Comparable Market Analysis. This analysis serves as a way to review Two Items about your property.
1. Market Ability
The CMA gives you an idea on the active comparables surrounding your home. The comparables are chosen by an algorithm provided by MLS. Each home is a competitor at the current time you wish to list your property. Active listings are important only because they can give you an idea on how much your home will sell.
2. Appraisability
The CMA also attempts to give you at least three sold comparables that recently sold close to your property. This is the basis on how Appraisers find their own value during the closing process. An appraisal is only a licensed opinion, so a range is more of a factor when looking at sold comparables on the CMA. Our company provides the CMA at no cost at all to any client.
Conclusion
A Comparable Market Analysis, just like an appraisal, is only an opinion from a licensed individual. Both have different purposes, however, they can't be relied upon a specific value. The best thing to do is to think of both of them as range of the possible value of your home. Did you know that there are different definitions of the term value when speaking about home values, business values and personal values?
Will Puente, PhD, MBA, JD Candidate