Real Estate Market Area knowledge

If you are new to real estate business, or new to the area, get help. A CMA is not just comparative math area. A through knowledge of the dynamic of property sale in specific area is required to make judgement based on the data presented.

Collected comparable property:
When selecting properties that you consider comparable to your subject property, important consideration includes.

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1. Sales far above are far below the bulk of the group are suspect. There likely are valid reasons for the divergence.
2. Make sure you can justify comps not used. If you decide a comparable is not appropriate, have a good reason.
3. Use sold comparable that are not too old. Stay in as current a time frame as possible.
4. When quality permits, use similar construction type only.

Value for property differences:

When comparing similar properties, there are always differences. Be sure to adjust your subject property's value estimate for its differences from the comparable properties:

• Add are subtract value for difference in lot are acreage size.
• Do the same for future differences, such has bedrooms. bathrooms, garbage etc...
• Look at financial differences that could have influenced sale price. Seller financing can at time result in a higher price paid for property that is not related to its true value.

 Analysis of the competitive market:

A full and detailed report to your listing prospect client can not be complete without the similar market analysis of the properties listed and competing with their home at the time. Your list price recommendation can be modified up or down depending on how many homes have been listed in the area at the time of the list prices.

Knowing that some the highest sold comps came from period with very low inventory could cause you to amend your list price estimate downwards a bit if the current market has a significantly higher inventory.