What Is A Comparative Market Analysis "CMA"?

When you have found the home you want to purchase, the initial step is to create a Comparative Market Analysis (CMA). A CMA predicts the current value of a home by analyzing past (up to 6 months) and current transactions similar to the property you are interested in. By analyzing this data, you can accurately predict the selling price of a home if a buyer wanted to purchase it today.
Additionally, it is a good idea to contact the seller before making an offer to gather information that may strengthen your offer. Inquire about the number of offers or showings the property has received, and look for any "black swans" which can act as multipliers in negotiations. An example of a black swan is if the seller requests a 15-day rent-back after the close of escrow, or if they would prefer to sell the home with the furniture included. Use this information to construct your purchase agreement for success.