What is a CMA?
A CMA, or Comparative Market Analyis is an in-depth look at properties in your area that may be similar to yours in order to determine the current market value of your home. Canadian Realtors have created and maintained databases of SOLD properties for over 60 years.
As Realtors, we focus on determining the “Fair Market Value” of your home.
Fair market value is a legal term defined by the courts as the most probable price which a property would bring on the open market, given prudent, knowledgeable and willing buyers and sellers.
What is a Comparable Home?
There are many factors that contribute to how homes may compare to one another:
Location – Geographical location is the very first determinate that we look at when trying to find properties that are similar to your own. A home, for example, in Stony Plain will have a different value to a home in Upper Windermere of Edmonton, all other things equal. We also look at where and how your home is situated on the lot; is it facing a road or backing onto a pond?
Home Type/Style – This includes condos (highrise, 4 storey lowrises, townhouses, etc), single family homes (half duplexes, two-stories, bungalows, split levels, etc), mobile homes, and many more options. A two storey home with an attached garage is not particularly comparable to a split level home with a detached garage value-wise.
Year of Home – The trend these days tends to favor newer homes and newer home styles as being more desirable for buyers. Desire translates into higher value. There are notable exceptions to this trend when it comes to certain communities in Edmonton that have many older “character homes.”
Lot Size and Type – Not surprisingly, lot size and shape will play a factor on your home’s value.
Home Features – Garage presence/type, decking, upgraded electrical, bedrooms, basement finishing, attached goods included and many other features that make your home amazing will contribute to your value when compared with other homes. Speak with us before undertaking large scale renovations or additions, however, if you plan to sell; not all renovations will translate into a proportional increase in sale price!
Home Upgrades – Buyers want homes that won’t need a great deal of work in the short term. Large-cost items that have been replaced are a great selling feature for prospective buyers and can affect the purchase price. Consider upgrading your shingles, windows, furnace, hot water tank, or fencing. Speak with us before undertaking large scale renovations, however, if you plan to sell; not all renovations will translate into a proportional increase in sale price!
General Condition/Maintenance – While the true condition of comparable properties isn’t always discoverable during home analyses, a well-maintained home with minimal damage will always command a higher purchase price on a fair market.
What Data is Considered?
Analyzing SOLD data only is a common mistake that other agents sometimes make. TEAM LOVE offers a full and comprehensive look at all aspects of the market, including: