Comparative Market Analysis (CMA) Real Estate Investing

Comparative_Market_Analysis http://JoanWilson.PrudentialCal.com Hello this is Joan Wilson with Prudential California Realty. Recently I've been asked what a CMA is? It is a comparative market analysis. A comparative market analysis is an estimate of the value of the property using only a few indicators taken from sales of comparable properties such as the price per square foot. Comparable properties are properties that are similar to the one being sold.

So let's take a look at a particular property. For our example, let's look at a detached home that has three bedrooms two baths, and is 1,511 square feet. This home is located in Oceanside in the zip code 92054.

As a realtor. I go into the MLS (multiple listing service) and define my parameters around the information particular to this home. As you can see, I picked detached homes, zip code 92054, the active and sold (in the last three months), with three bedrooms, two baths, and the square-foot between 1,400 and 1,600.

If you look at the active listings on the market in 92054 and approximately the same size home, you will notice there is quite a variety of pricing. For a true analysis, we would probably need a few more criteria, however active homes, show you what's going on the market. Sold homes show you what's selling and the price range that you can expect to get.

In the last three months, only two homes have sold that are approximately the same size as this home. There are ways to get more information by broadening your criteria, however for our example this is enough data. Let's take a closer look at the sales price.

If you look at that high and the low, you will see that the average sales price is $202.28 a square foot. So if we apply this data to the home that we are evaluating, here are the values that we would get.

Low value for our 1,511 square foot home would be $291,000 with the high value being $320,000. The average price for home this size in this area would be $305,000.

This is a very simple comparative market analysis, however it is a lot of information about the average sales in the area. What you can expect to pay for home in this area, about this size. It is not an appraisal and should not be compared to one. However before I paid for appraisal I would get a comparative market analysis.

This is Joan Wilson, if I can help you determine the value of your home or determine the value of a property investment you'd like to make, please feel free to call me anytime. I'm here to help. Thank you for you time every day.Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)
Prudential California Realty Phone: 760-757-3468 800-975-7481 x 111
JoanWilson@prusd.com License # 01341483
Find Your Dream Home: http://JoanWilson.PrudentialCal.com
http://JoanWilsonRealtor.com

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