A Comparative Market Analysis (CMA) is a crucial tool for homeowners looking to understand the value of their property. Whether you’re considering selling or simply want to keep track of your home’s market position, a CMA provides a detailed look at comparable properties in your area. Here’s a breakdown of the steps I take to create a market report, which includes an in-depth CMA to give you accurate insights into your property’s value.

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Step 1: Gathering Market Data

To ensure accuracy, I use data from the MLS (Multiple Listing Service), specifically Realcomp, which shares information across most MLSs in Michigan. This allows for a comprehensive view of all comparable listings and recent sales near your property.

When gathering data, I focus on three main types of Listing Status:

• Active – Homes currently on the market.
• Pending – Homes that are under contract but haven’t closed yet.
• Sold – Homes that have closed recently, providing the most reliable market data for pricing.

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Step 2: Selecting Relevant Comparable Property

The first thing I do when creating a market report is to analyze the general information about your property, starting with location. My criteria are specific to avoid crossing major intersections or other dividing factors that could impact comparable accuracy. Here’s are examples of what I consider when refining the search:

• Location Specifics: City, County, ZIP code, and school district.
• Architectural Level: 1 story, 2 story, bi-level,  tri-level home, duplex, townhouse or multifamily
• Architectural Style: Common styles include ranch, colonial, and bungalow, duplex.
• Property Type: residential home or a condominium, vacant land or commercial
• Foundation Type: For example, a basement, crawlspace, or slab foundation.
• Property Details: Number of bedrooms, bathrooms, garage size, and any unique features.

These details help ensure that I’m only comparing homes similar to yours, giving us the most precise market snapshot.

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Step 3: Analyzing and Compiling the Data

Once I’ve narrowed down comparable properties, I review each home’s photos and specific details. This visual inspection helps identify condition differences that may affect market value, such as upgrades, renovations, or property age.

To compile the data into a professional, organized report, I use a program called Cloud CMA. This software generates two versions of the CMA:

1. PDF Version – A printable document for easy reference.
2. LIVE Interactive Online Version – A live, user-friendly website with high-definition photos, visual menus, data graphs (like days on market and average pricing), and online value comparisons.

The live version of the CMA offers additional features, including my resume, client review, our brokerage information, and our marketing campaigns. This helps you understand the strategies we use to get your home sold for top dollar.

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Step 4: Reviewing the Report Together

Once the market report is ready, I’ll email both the PDF and the LIVE interactive version for your convenience. Scheduling an in-person walk-through of your home is the next step. During this meeting, we’ll discuss the data in the CMA and how it influences your potential sale.

Setting the Listing Price

We’ll review the recommended listing price, aiming to attract the most buyers and receive competitive offers. Pricing your home strategically is key to driving interest and securing top dollar in today’s market.

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Step 5: Understanding Your Seller Net Sheet

During our listing appointment, I’ll also walk you through a Net Out Example, an estimated cost sheet outlining the sale’s expenses. This sheet gives you a clear idea of what you can expect to take home at closing, providing transparency and peace of mind. Broker Commissions are NOT set by law and are fully negotiable. 

Example Net Sheet:

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Why Get a CMA, Even If You’re Not Selling?

Even if you’re not ready to sell today, having a current CMA provides valuable insight into your home’s value in today’s market. Regular market updates can help you make informed decisions about renovations, refinancing, or future sale plans.

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In Summary: A CMA provides a comprehensive analysis of your home’s market value by comparing it to similar properties in your area. If you’re interested in learning more about your home’s worth or want a personalized market report, feel free to reach out. I’m here to help you stay informed and prepared in an ever-changing market!

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Ready to Discover Your Home’s True Market Value?

Understanding your home's market value is key to making informed real estate decisions. Whether you're preparing to sell, considering refinancing, or simply curious about your investment, a comprehensive CMA can give you the insights you need.

Let’s get started! Contact me today for a personalized Comparative Market Analysis tailored specifically to your property. Together, we’ll review the data, set a strategy, and maximize your home’s potential in today’s market.

About the Author

Jason Salem is a licensed REALTOR® with REALTEAM Real Estate, specializing in helping clients buy and sell homes with confidence. With a deep understanding of the local market and a passion for guiding homeowners through every stage of the real estate journey, Jason is dedicated to providing expert advice and unmatched service. He’s also a proud partner of the Homes For Heroes program, supporting heroes in the community. For more tips or to discuss your real estate needs, contact Jason at jsalem@mirealteam.com or www.jasonsalem.com