It is a generally accepted practice to use CMA’s (Comparative Market Analysis) information in arriving at an accurate selling price for a property that is for sale.  This is the practice of analyzing similar properties that have sold over a specific period of time and using their selling price as a means of determining the value of a specific piece of property.

In today’s market environment, it has become much more imperative that the market analysis be based on very recent sales.  Because the market has rapidly decreased in value, only sales information for the past 90 days is considered acceptable by banks and mortgage companies considering the financing of a property.  In the past, comparative pricing from the past year was more than acceptable.  The current market fluctuation has determined that this information must be much more current so that it reflects an accurate picture of the market in that specific area as it is today. 

One of the current issues is that, if a person signs a contract for a piece of property and then has an appraiser value the property, a much lower appraisal will cause the buyer to request a lower price, even after the contract has been signed.  This is happening on a regular basis and home values are decreasing because of it.

CMA’s have long been a tool used to evaluate the current value of a property.  Only today have the restrictions become so rigid, requiring that the sale used for comparison be very current.  In some cases, appraisers are coaxing real estate agents to give them sales prices that have not yet been recorded so that they can include them in their CMA’s.