The primary purpose of a CMA is to compare a subject property against \u201ccomps\u201d or nearby homes that have recently sold or gone under contract. These comps provide a reference point for how much a real buyer would pay for a home that\u2019s about to go on the market. You can expect a CMA to feature a combination of property details pulled from the MLS, interior and exterior listing photos, and market indicators like inventory levels for the surrounding area.<\/p>\n
Let’s review each part:<\/p>\n
Property details<\/h2>\n
Fuller starts his CMAs with the property\u2019s address and a map showing the lot and the surrounding properties. The CMA is typically used to price a home that hasn\u2019t been listed yet.<\/p>\n Next, Fuller drills down into the main details of the home. The intro paragraph serves as an elevator pitch, touching on the highlights that will be most desirable to buyers, such as great views, kitchen and bath upgrades, interior living space, outdoor entertaining space, landscaping, and top-rated schools.<\/p>\n Below that is a listing of all of the specific home facts, such as the number of bedrooms and bathrooms, lot size, construction materials, age of the home, and more.<\/p>\n \u201cThe right upgrades, like kitchen remodels, bathroom updates, and additions can all increase the value of a home,\u201d Fuller says.<\/p>\n Next, the CMA outlines additional property features, including:<\/p>\n Fuller notes that these details can have a direct impact on a home\u2019s market value. For instance, if a property is in a highly desirable school district; next to a well-maintained park with walking trails; or has a large, private lot, those selling points can boost the list price.<\/p>\n These days, almost every real estate sale starts with an image \u2014 or several. According to the National Association of Realtors\u2019 2020 Generational Trends Report, photography was the most important online feature when shopping for a home among almost 90% of buyers<\/a> under the age of 55, and some studies have shown that quality photos can help homes sell up to 32% faster<\/a>.<\/p>\n When creating a new CMA, the agent hasn\u2019t yet hired a professional photographer for a photo shoot. Fuller likes to include any pre-existing images of the property, perhaps from Google Maps or from a time when the home was previously listed, to provide some context and personalize the report as shown below.<\/p>\n This page shows how the property\u2019s estimated home value compares<\/a> to the values of other homes in the same ZIP code, county, and state, based on public records and MLS sources. It also includes all of the home\u2019s previous sales and its assessed values and taxes for each year.<\/p>\n \u201cI like to include this type of historical information to help determine the cost basis and equity accumulated,\u201d Fuller says.<\/p>\n This section shows a snapshot of the state of the market in the ZIP code where the property is located. Here, the seller can see:<\/p>\n Fuller\u2019s CMA dives even deeper into the current market with charts that show key information about what\u2019s selling (and for how much):<\/p>\n \u201cMarket health is significant as rising home values, low inventory, and neighborhood desirability all influence property values,\u201d says Fuller.<\/p>\n <\/p>\n This section shows a map with a general snapshot of what\u2019s been happening in the local market lately. The seller can easily see the total number of active, pending, distressed, expired, and closed listings, along with the low, median, and high listing prices. This overview also shows the median living area, price per square footage, and age of properties in each category.<\/p>\n At the heart of every CMA are the comps, which are comparable properties in the area that are currently on the market, have been recently sold, have a pending offer, or were on the market but were later removed.<\/p>\n When choosing which comps to include in his CMAs, a property generally must meet some key criteria:<\/p>\n In this CMA, Fuller starts by providing a chart of a selected number of active listings in the area. These are homes that are currently for sale in the local market. The chart offers a quick comparison of key information for each property, including the address, list price, listing date, number of bedrooms and bathrooms, square footage, lot size, age, the MLS listing number, the listing broker, and a description. Next, there is a dedicated page for each of the active properties, showing a photo, map, and additional details.<\/p>\n \u201cActive properties are very helpful in determining the listing price, because they show us what\u2019s happening in the market in real time,\u201d Fuller explains. \u201cA seller who has priced a home significantly higher and is successful has pushed the boundaries of the market, while a seller who has priced on the high end and is not selling has pushed the boundaries too far, outside the scope of what buyers will pay.\u201d<\/p>\n Pending properties are homes that have had an offer accepted and have gone under contract within the past several months, but have not closed yet. \u201cThese properties tested the market and were successful,\u201d says Fuller. \u201cThey show a real-time pulse of what\u2019s happening in the market, with the most accurate and most recent value.\u201d<\/p>\n As with the active properties, Fuller\u2019s CMA includes a comparison chart of selected pending homes, then provides a detailed page for each of those properties.<\/p>\n Closed properties are those that have recently sold in the area. Fuller tries to include similar, nearby homes that closed within the last six months. Again, he looks for properties that have similar square footage, amenities, and communities.<\/p>\n \u201cAppraisers love the sold comparables, as they can be a great tool to assess the value of a property,\u201d says Fuller. Closed comps also show the number of days on the market (DOM), which is a big indicator of the strength of the market. \u201cIf a home was on the market for a very short period of time, we know the market is likely very strong for sellers,\u201d Fuller explains. \u201cBut if it took several months, that may indicate that the market is more in the buyers\u2019 favor.\u201d<\/p>\n Closed comps also provide the opportunity to compare the list-to-sell ratio to help gauge in which direction the market is going. If a house sold for above list price, that means it\u2019s likely there were multiple offers, but if it sold for below list, that could be a sign that the market is on the decline.<\/p>\n However, it\u2019s important to keep in mind that the sale price of a closed property can often be a little dated, because it may have been several months since the buyer initially wrote the offer. \u201cValues have been appreciating throughout the country, so take into consideration that sold comparables may be significantly less,\u201d notes Fuller.<\/p>\n These are properties that were on the market at one time, but were then removed, possibly because they were listed at a too-high sale price and then failed to sell.<\/p>\n Fuller includes expired listings as sort of a cautionary tale. One of the common reasons that a property might not sell is that the price was too high. These withdrawn listings can help ensure that the subject property is realistically priced to prevent it from sitting on the market too long and ultimately getting removed.<\/p>\n At the end of the CMA, Fuller includes a recommended pricing strategy based on the high, low, and median prices of all of the active, pending, closed, distressed, and expired listings in the CMA. He also includes a sold price comparison of the high, median, and low sale prices for several nearby properties.<\/p>\n \u201cAll of the factors provided in the report culminate in a price range that is generally based on the improvements the seller is willing to make,\u201d Fuller explains. \u201cThe more improvements they are willing to make, the closer to the top of the price range, and fewer improvements will be closer to the bottom of the price range.\u201d<\/p>\n For the seller, the most important number is the amount of cash they\u2019ll have after the sale closes. Some CMAs will include a worksheet to help the seller project how much their proceeds would be if the home sells at a low-end price and a high-end price, after deducting any mortgage balances, closing costs, concessions, and other fees.<\/p>\n![\"An](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.04.35-PM-775x391.png\")
<\/a>![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.09.18-PM-775x702.png\")
<\/a><\/a><\/p>\n![\"The](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.18.02-PM-775x500.png\")
<\/a><\/a><\/p>\nExtended home facts<\/h2>\n
\n
![\"The](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.21.06-PM-775x499.png\")
<\/a><\/a><\/p>\nProperty photos<\/h2>\n
![\"The](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.22.57-PM-775x498.png\")
<\/a><\/a><\/p>\nProperty history<\/h2>\n
![\"The](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.25.25-PM-e1622665644289.png\")
<\/a><\/p>\nMarket activity<\/h2>\n
\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.29.43-PM-775x502.png\")
<\/a><\/a><\/p>\nMarket health charts and comparisons<\/h2>\n
\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.32.20-PM-775x499.png\")
<\/a><\/a><\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.34.58-PM-775x500.png\")
<\/a><\/a><\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/what-is-a-comparative-market-analysis-main-street-666x381.png\")
<\/a>Select recent market activity<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.36.35-PM-e1622666307490.png\")
<\/a><\/h2>\nComparable properties (comps)<\/h2>\n
\n
Active properties<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.39.45-PM-775x503.png\")
<\/a><\/a><\/h3>\nPending properties<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.44.35-PM-775x499.png\")
<\/a><\/a><\/h3>\nClosed properties<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.46.08-PM-775x500.png\")
<\/a><\/a><\/h3>\nExpired properties<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.48.38-PM-775x501.png\")
<\/a><\/a><\/h2>\n![\"Dollar](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/what-is-a-comparative-market-analysis-dollar-sign-666x381.png\")
<\/a>Recommended pricing strategy<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.50.47-PM-775x581.png\")
<\/a><\/a><\/h2>\nSeller\u2019s proceeds<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/06\/Screen-Shot-2021-06-02-at-4.53.02-PM-e1622667278715.png\")
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