Looking to list your home? Before you do, you might be wondering how much value your home has acquired since you bought it. Whether you’ve lived in your home for a while or totally renovated it, a comparative market analysis can help you determine your home’s value.
A CMA is typically performed by a licensed real estate agent. But, how much do they cost?
How much does a comparative market analysis cost?
Some agents may charge $100-$200 for a CMA, and some agents may not charge anything. Many agents advertise free CMAs as a part of their marketing. If you’re listing your home with an agent, a CMA will almost always be included in what you get.
Factors that go into a comparative market analysis
A CMA compares raw data about your home with properties that are comparable in size, location, and other factors. These comparable properties are known as “comps”. Your agent will search the multiple listing service (MLS) for current and previous listings over the past 3-6 months (depending on market conditions). They’ll look at how long homes like yours took to sell and the difference between their list prices and their sale prices.
In addition to the basics (like square footage and the number of bedrooms and bathrooms), a CMA will include any amenities or features the comparable properties have (like a swimming pool). A full CMA report will include:
- The MLS number
- Number of bedrooms and bathrooms
- Amenities (such as a pool)
- Square footage
- Price per square foot
- Sold date
- Number of days on the market
How to use a CMA to prepare for your sale
Your agent will use a CMA to arrive at a suggested listing price, but it can be useful for so much more. If you’re not ready to sell just yet, getting a CMA report done early can help you prepare for the selling process.
Your CMA can help you make decisions about whether to sell your house in its current condition or if it makes sense for you to renovate parts of your home. Home renovations can play a key part in increasing your home’s value and listing price, but you have to be strategic in what you choose to renovate. Some renovations may have a low return on investment – meaning you may not recover that cost when you sell.
Renovations of any kind should be planned ahead of time to allow for planning, scheduling, and completion of the project. Getting a CMA report early can help you prioritize these decisions and highlight what options might be best before you list your home.
Ready to get started?
Team Melton has over 50 combined years of real estate experience to assist you through every step of the process. Contact us today to get started on selling your home!