Why You Might Want a CMA, Even if You’re Not Selling
First things first … What on earth is a CMA?
CMA is an acronym for Comparative Market Analysis. This is an in-depth report on a home's current value that is prepared by real estate professionals by examining the sale prices of similar properties in the area. In short, it tells homeowners what their home is worth.
But what you might not know is WHY you might want a CMA if you’re not planning to sell your house. Here are six reasons having a CMA done by a Realtor could be helpful.
To know how much equity you have in your home.
Sometimes it’s just fun to know how much appreciation you’ve gained in your home. We all want to feel good about our real estate purchase and getting a current CMA gives you a professional’s insight. Not just what you’ve noticed selling on your street.
To help plan for home renovation or improvements.
And speaking of home equity above, maybe you’re planning to do some home renovations or improvements. If so, you might be able to borrow against the equity you’ve gained through a HELOC or cash-out refinance to finance those projects!
To understand your overall financial picture.
Maybe you have a five-year financial plan and want to know how your house factors into that. Knowing your current home’s value can be helpful in keeping tabs on how you are tracking against your longer term financial goals.
To see if you can eliminate other high interest debt.
If you have other debt at a high interest rate, like credit cards, you might be able to pay it off and finance it into your house at a lower rate than your credit card rate.
To settle a divorce.
If you are getting divorced, you will need to know the value of all your shared assets - and this includes your house. Realtors can provide a CMA so that you and your soon-to-be-ex spouse can settle the division of the home. That may look like selling and splitting the proceeds or one spouse buying the other out of their portion of equity.
To see if you are in a good position to move up.
Ok, ok. The sixth reason is selling-related. But really it’s the informational step. Maybe you’re not sure if you can even upsize. Knowing the current value of your home and how much you have to put into a new home, is the best information to then talk to a lender about to see if it’s a good time to make the move.
Ready to get the current value of your home? We provide CMAs free-of-charge! Just click the button and fill out the form to request yours.