Real estate agents create a comparative market analysis for their clients to help determine a fair price when selling or buying a property. CMA is a reference tool, or a less-sophisticated version of a formal, professional appraisal.
A good real estate agent utilizes both various listing types and specific characteristics
to determine a fair price of a property.
Listing Types Include:
- Active Listings: These are properties that are currently on the market. This provides an overall indication of pricing for similar properties.
- Pending Listings: a sales contract has been signed, but the sale has not closed. Pending listings may give an indication of the direction in which the market is moving.
- Sold Listings: These are properties that have sold and closed within a specific time frame. The prices indicate market value and the actual comparable price of a similar property. The sold data of similar properties could be within a specific building or area
- Expired Listings: This covers properties that did not sell during the time they were listed, including properties that were removed from the market list without selling typically because they were priced too high and had been on the list for a long time.
Specific Characteristics that would be considered:
- Co-op or Condo
- Square Footage/unit layout
- Location – Perhaps the floor of the unit within a specific building
Clients rely on their real estate agent for professional, accurate and helpful information.