Buying a home for the first time brings about new terminology, new experiences, and new interactions with the business side of home buying that most new buyers are totally unfamiliar with. Comparative market analysis, usually shortened to CMA, is one phrase that could come up that you really should know the meaning of. While some terms will probably never be explained fully when you are in the process of buying a home, there are those that can give you more in-depth understanding to make the best decisions, and CMA is one of those terms. Here is a brief look at some of the most common questions about CMA and CMA brokers that will come in really handy.
So what is CMA exactly?
A CMA is a market analysis of the home compared to current, past, and predicted future market values. This in-depth report will give you a look at home values in the city where the home is located, as well as in the neighborhood. You will also get to see how well the home is expected to hold its worth over time, and how stable the home's value has been in prior years.
What does a CMA broker do?
A CMA broker is basically an agent, usually employed by the real estate company or a real estate agent with specific CMA training, who condusts the analysis before a buyer makes an offer. In most cases, a realtor will obtain a CMA from this broker before listing a property for sale, but not always. Therefore, if you are seriously considering buying a home in a given area, make sure you bring up teh fact that you would liek to speak to a CMA broker for advice before making an offer.
Is the CMA more important than the appraisal?
The CMA can be just as important as a home's appraisal, and some may say even more so. While the home's appraisal gives you an idea of how much the home is valued at, it does not give you an in-depth look at the other home values in the area. The home appraisal and CMA are most useful will viewed as tandem information because it gives you a look at the value of the home compared to the rest of the homes in a specific area, which can give you a good idea as to whether you are getting a good price.
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