What is it?
When evaluating the price of a home or property, most real estate agents will use what’s commonly called a CMA. The CMA is a list of similar homes, in a similar area, and with similar features, as the home being evaluated. After determining the list of comparable homes (called “Comps”), adjustments can be made for differences between the homes.
How Accurate are CMAs?
This is a complicated question. The CMA’s accuracy is dependent on a lot of factors, any number of which can reduce the accuracy. One of the biggest challenges is that CMAs look at sales in the past, while trying to evaluate an offer or list price in the present or future. And time changes markets and values.
Another factor that goes into most agents’ pricing suggestions is the agent’s experience. An agent with more current experience will typically have a better idea of nuances in the market that other agents wouldn’t be aware of. Pricing is one of the top reasons to always hire an experienced REALTOR®