...and to find out what's sold, you'll need a Comparative Market Analysis.
According to the North Carolina Appraisers Act, a comparative market analysis (CMA) is defined as "the analysis of sales of similar recently sold properties in order to derive an indication of the probable sales price of a particiular property by a licensed real estate broker or salesperson." In plain English; a CMA estimates the most likely sales price for a property by comparing similar nearby sales. It is sometimes called a competitive market analysis because the property being sold is most definitely competiting with all other similar properties on the market.It is very important to note that SOLD properties, i.e., properties that have actually changed legal ownership, are by far the most critical information to consider. This generally indicates what buyers [1] are willing to pay, [2] can get appraised, and [3] have been able to borrow. Because a CMA compares similar properties it can give a seller or buyer a good overview of current housing values since it will detail exactly where, in the range of prices, the house is positioned in that market area. Little emphasis is on the prices of properties currently on the market. These homes could be overpriced and may eventually bargain down to a realistic price or be withdrawn from the market entirely. One of the largest reasons that a property listing will expire without selling is because it is overpriced.
What does a CMA include?
Since our Multiple Listing Service is computerized, the agent prepares the CMA on their home or office computer. The CMA will show specifics about the property and 3-10 properties that are similar in size and amenities located in the same neighborhood or nearby. Details will include street address, number of bedrooms, number of baths, square footage, and age for similar properties that are currently on the market, those that are under contract but not yet closed, and those that have closed and transferred ownership. Those listings that have either expired without selling or have been taken off the market may also be shown.It is important to stress that a comparative market analysis is not a formal appraisal and should not be used for lending purposes. In the vast majority of real estate sales, since a mortgage will be needed to finance the purchase, an appraisal is required for lending. Appraisals are prepared to meet the Uniform Standards of Appraisal Practice (USPAP), the accepted standards of the appraisal profession.
All state governments regulate real estate appraisers and a majority of states have adopted "mandatory appraiser licensing" requirements that require opinions of market value to be estimated by licensed or certified appraisers and in compliance with the USPAP.
