CMA stands for Competitive market analysis Although reports can vary, from just a few pages to small booklets, the length and complexity of the report depends on the agent and available data.
Typically, most CMA’s will contain the following:
Active listings are homes currently for sale. The purpose of this data is to allow you to gage the direct competition in your market. Keep in mind this data can be skewed if homes are listed above market by Realtor® who’s only concern is having a listing an not actually selling it. The National Association of Realtor® indicates that most home owners settle for a sales price far below the original asking price.
Pending sales homes that are under contract but have not closed yet, so they are not yet a comparable sale. Unless the listing agent is willing to share information about the pending sale — and many are not — you will not know the actual sold price until the transaction closes. However, pending sales do indicate the stability of the market. If your home is priced above the list price of these pending sales, you will face longer days on market.
Homes that have closed within the past nine months are your comparable sales. These are the sales an appraiser will use when appraising your home for the buyer, along with the pending sales. Please focus on the closed homes because this is a direct reflection of the market value of your home.
These are properties that were taken off the market for a variety of reasons. Usually it is because the home did not sell because it was priced higher than the market will bear.