What factors affect the CMA?
Your real estate agent spends much of their time evaluating changes in the market and the value of an individual property. This experience is crucial for getting the correct CMA, as it is a very precise, fact-based calculation.
Your real estate professional
Preparing a CMA requires some expertise and takes into account a lot of data – from market trends to the prices of nearby homes and the value of their various features and potential renovations.
For this reason, your CMA should be prepared by the real estate professional you work with. They know the market. They attend open houses, note features that set one home apart from another, and pay close attention to subtle changes in the market. They have access to the Multiple Listing Service (MLS) and other CMA tools to help them get it right. They will be able to fine-tune your CMA with precision.
do it yourself
You can perform a CMA yourself, although it will be difficult to do so accurately without the resources available to real estate agents. The best you can do without MLS access is find comps for homes near you using ad sites. Keep in mind that the data displayed may sometimes be inaccurate or outdated from what an agent might find for you.
The rule of 3
To perform a CMA, a real estate agent or REALTOR® will follow the “rule of three”. The agent will find at least three houses sold in the last 6 months that are as similar and close to the house bought or sold as possible.
This method works well for established neighborhoods with similar homes, but can create problems for rural buyers and sellers who don’t have as many direct counterparts to compare against. USDA loans are available to help those with appraisal problems in rural areas.
Unfortunately, Rocket Mortgage® does not offer USDA loans at this time.
The value of a home can be significantly affected by the real estate market it is in. Your real estate agent will know if the house you want to sell or buy is located in a a buyer’s market or a seller’s market. The pandemic market functioned as an extended seller’s market.