If you are thinking about selling your home, one of the first questions you may have is, “What is my home worth?”
While there are online home-value estimates and plenty of information available about recent sales, determining a realistic asking price involves much more than simply looking at a number online. A Comparative Market Analysis, commonly referred to as a CMA, can help homeowners better understand how their home compares to other properties in the current market.
What Is a Comparative Market Analysis?
A Comparative Market Analysis is an evaluation of a property based on recent sales, current listings, and other market information. A real estate professional reviews similar properties and considers the differences between them to develop an estimated range for what your home could potentially sell for in the current market.
A CMA is not an appraisal and does not guarantee what a home will ultimately sell for. Instead, it is a helpful tool for making informed pricing decisions.
How Are Comparable Homes Selected?
Finding comparable properties involves more than looking for homes with the same number of bedrooms or similar square footage. A CMA may consider:
- Location and neighborhood
- Recent sale prices
- Bedrooms and bathrooms
- Square footage and layout
- Lot size
- Age and condition
- Renovations and updates
- Garage and parking
- Outdoor features
- Finished basement or additional living space
- Other unique features
The goal is to find properties that provide a meaningful comparison to your home.
Why Do Recent Sales Matter?
Recent sales provide insight into what buyers have actually paid for similar properties. However, the most recent sale is not necessarily the best comparison. Differences in condition, location, features, and changing market conditions can all affect value.
That is why a CMA looks at multiple properties and factors rather than relying on one sale.
Why Isn’t My Home’s Value Simply the Average of Similar Homes?
Every property is different. Two homes can have the same number of bedrooms and bathrooms but have significantly different values based on their condition, updates, lot size, location, or other features.
A CMA takes these differences into consideration rather than simply averaging the prices of several properties.
CMA vs. Appraisal: What’s the Difference?
A CMA is typically prepared by a real estate professional to help determine a reasonable pricing strategy based on current market conditions and comparable properties.
An appraisal is completed by a licensed or certified appraiser and is typically ordered by a lender as part of the mortgage process. It provides an independent opinion of value based on specific appraisal standards.
What About Online Home-Value Estimates?
Online valuation tools can be useful as a starting point, but they may not account for important details about your specific property.
A local real estate professional can consider factors such as recent renovations, property condition, lot characteristics, and other features that may not be reflected in an online estimate. In Lancaster County, factors like school district, proximity to major routes, and whether a property is in a rural township versus a borough can meaningfully affect value in ways an automated tool simply cannot account for.
When Should You Get a CMA?
You don’t have to wait until you’re ready to sell. A CMA can be helpful if you are:
- Considering selling in the near future
- Curious about your home’s current value
- Planning a move and estimating potential proceeds
- Wondering whether now is the right time to sell
- Considering improvements before listing
- Simply wanting to better understand the current market
Get a Free CMA from Carol Lehman
Carol Lehman offers free Comparative Market Analyses to homeowners throughout Lancaster County. Whether you’re thinking about selling soon, planning ahead, or simply curious what your home is worth in today’s market, Carol can walk you through a detailed look at how your property compares to recent sales in your area.
Carol will start with a conversation about your home, your plans, and your goals. When helpful, she can also visit the property in person to get a full picture of what makes your home unique in the current Lancaster County market.
Curious what your home could sell for? Reach out to Carol for your free Comparative Market Analysis.