CMA's are opinions of value performed by Realtors® based on closed sale data from the MLS. While a CMA is helpful, the data used may be out dated or inaccurate due to seller concessions. Seller concessions may include, "closing costs" that have been paid by seller which were not deducted from gross sale or reported to MLS. Realtors® will seldom call the listing or selling agent to verify if a sale had "seller concessions" nor would an appraiser.
CMA's are a guide to setting a sales price but they are not completely accurate.
Value is important to set the price correctly. CMA's are accomplished by compiling data from the MLS (only Realtors® have this data) by looking at "sold properties" within a definitive area of your property within the past 6 months. Real estate markets change rapidly, therefore, old closed sales data maybe misleading. One or two "sales" within that data might contain seller concessions (example: seller paying $10,000 of buyer's closing costs) or a "fire" sale which will skew values.
How To Create A CMA When You Are Not A Realtor:
You can do your own CMA by looking at the "list price" of similar homes that are on the current market by gathering data from Realtor.com® and Homes.com or other online sources. Sold data can be researched by using "on-line" public tax records and talking with local Realtors® for pricing clues can all generate data for a CMA. The end result should be a "price per square foot" number (living area).
After this data is gathered, add or subtract value or variations in value such as:
Any other considerations
Self-represented sellers may also want to consider ordering a CMA through ADDvantage® for $50 or request a full appraisal by a licensed professional.
For more info call 1-877-232-9695