What is a CMA? Do I need a CMA?
When attempting to pull together a reasonable offer, you’ll need to understand what the property is currently worth and what the property will be worth once rehabbed (After Repair Value). To determine the value of a property a Real Estate Agent could very well send you a list of nearby recently sold, like properties. Or a Real Estate Agent could conduct a comparative market analysis (CMA).
A comparative market analysis is a report that real estate agents use to estimate the value of a property. This report can be presented to the buyer or seller to further explain the reasoning behind the estimated valuation.
Why request a CMA?
In the Baltimore City, Maryland market, Real Estate Agents will send the investor comparables (comps) via email through the Bright MLS webpage. This list appears as a hyperlink via email. Upon clicking the link, it navigates the investor into the Client portal.
From there, you’ll see the list of comps that justifies the estimate provided by your Real Estate Agent.
There are no:
Statistics
Visualizations
Etc.
On the other hand, a CMA provided from the Bright MLS system will offer a report full of information, data, and visualizations.
How do I get a CMA for my house?
It’s very simple. Just ask for it. All Real Estate Agents have access to the MLS. The Bright MLS system offers an extremely simple way to comprise the CMA.
Once your Realtor has selected the comps, at the bottom of the page, there is a button: “CMA”.
Yes there are other steps associated with this, but it’s that simple!
How much does a CMA cost?
It’s completely, and absolutely 100% FREE.
Is Zillow a CMA? Can I find a CMA on Zillow
Is asking your Realtor for a CMA too much?
It is truly a fascinating question. Your Realtor does not get paid when answering your questions, taking you out on showings, etc. The Realtor does get paid when you close on a property.
To close on a property, may require the agent to answer your questions, take you out on showings, etc.
As with anything, there is a balance within the relationship. You, the investor, should take care of your real estate agent. Build a positive working relationship with your real estate agent. And in doing so, the agent will take care of you!
For example, if you ask for comps for 20 different properties at once with the expectation of a 24 hour turnaround, this may cause some issues.
Suggesting the relationship and balance are okay, the no, asking for a CMA is not too much at all. However, only you and the real estate agent can make that determination.
Ask the question! It may very well be possible that you request a CMA for every comp pulled by your agent. You won’t need to ask every time as your agent will already know!
So what are you waiting for, go request a CMA!
