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The CMA that you receive from your real estate agent will give you a snap shot of housing activity in the area for the last six months. It will most likely consist of at least 4 properties that are similar in size and features. These features consist of bedrooms, bathrooms, square footage, age and condition. Ordinarily, the CMA will provide you with homes that have already sold in the area. This information gives you the most accurate picture of what the focus property is worth.

Sometimes, especially in a market where sales are scarce, there are not enough comparable sold properties or ”comps” in a particular area and agents use houses that are under contract, or even active on the market. Since it is common for some agents to list a house slightly higher than they expect it to sell, using comps from active or pending properties can skew the prices in the report higher than they should be.

Another concern that has come to light in the current declining market is that even sold listings cannot always be considered true comps depending on the market conditions. Many appraisers are being instructed by banks to take into consideration the annual market decline and adjust CMA’s to reflect the decrease. This can make it even more challenging for a buyer to obtain a loan when they do finally choose their new home.

So where can you get an accurate CMA? First, there are informational sites on the Internet that provide automated home valuations, but many times these reports do not give accurate, up to the minute, information. Your best bet is to find a local realtor that is familiar with the area. Your realtor will understand the subtle differences in the market that affect your home’s value and can give you good insight as to the current activity in the market. Most agents are happy to provide these professional reports free of charge or obligation. A Comparative Market Analysis is a great place to start when you’ve chosen the house of your dreams and are ready to make an offer, or when you are considering listing your home for sale.