What is A CMA and Why Might You Need One in a Minneapolis, Minnesota Bankruptcy
A CMA, or comparative market analysis, is typically done by a licensed real estate professional. The realtor will usually go through your property to price it out for sale, comparing other properties of the same size, condition, and in similar neighborhoods.
A CMA is usually free and done fairly quickly, which is why it is often suggested over having a formal appraisal done, which usually takes some time and can cost a few hundred dollars.
Your bankruptcy attorney may suggest you have a CMA done to determine the value of your property if you are unsure of your home’s value or there is a wide range of values from property tax to online materials.
For example, if property tax says $100,000 and Zillow says $200,000 but you think the home is somewhere in-between at $150,000. Your bankruptcy attorney may suggest a CMA to have a hard valuation done of what a licensed professional thinks the home is worth. This is usually suggested as having something from a professional on the value and how they arrived at it, is typically better than a best estimate. CMA’s have more weight than property taxes, which are typically on the lower end of properties value. They also typically have more weight than Zillow or other online materials as well, as online materials are usually on the higher end of a property’s value. CMAs usually have less weight than a formal appraisal though, because a formal appraisal will provide all of the ins and outs of the property with more detail.
If your attorney has suggested getting a CMA done for your property, they will go through why they are suggesting it and the timeframe of when it should be done.
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