A ‘CMA’ for Buyers

While a CMA is traditionally a tool used for seller clients, it has potential for buyers as well. After all, one of the most valuable things a CMA provides is context, a clearer perspective on a single property based on the overall local housing market. Isn’t context just as valuable for buyers as it is for sellers?

CMA Basics
Basically, a CMA (competitive market analysis) is prepared by a real estate agent and provides recent comparable sales and a recommendation for listing price. For a more thorough education on CMAs 101, we recommend you read the following:

• Choosing a Valuation Tool: CMA vs. AVM
• 2 Ways a CMA Can Generate Leads

Buyer CMA
Now, the concept of leveraging a CMA for buyer clients removes one important component of a traditional CMA – the listing price recommendation (obviously, as the property has already been listed at a given price by the seller). However, just because you aren’t recommending a listing price, doesn’t mean you can’t give your two cents in terms of valuation. Calling upon your ample experience and leveraging your CMA tool, you can instead provide a recommendation on the price you would offer to the seller in order to buy the property.

A buyer CMA could also retain the other key component: comparable recent sales. It’s incredibly helpful for buyers to understand other recent activity in the market. This can provide insight on:

• Pricing (“Is the property listed too high?”)
• Availability (“Are there going to be many more properties similar to this cropping up soon?”)
• Demand (“Is this property going to sell quickly? Should we put in an offer right away?”)