What should a broker look for when compiling a competitive market analysis?

When compiling a competitive market analysis (CMA), it is essential for a broker to focus on comparable properties that are located near the property being listed. The proximity of these properties plays a critical role in determining the market value because real estate values are influenced by local factors such as neighborhood characteristics, amenities, and school districts. By analyzing properties in close vicinity, a broker can identify trends and price points that accurately reflect the current market conditions relevant to the specific area of interest.

While identical square footage may provide some information, it is not the only metric that should guide the analysis, as other features and location aspects significantly affect property value. Looking only at properties with a higher market value can lead to inaccuracies, as those properties may not reflect the value of the subject property appropriately. Additionally, restricting the analysis to sales within just the past month may overlook valuable data from slightly older sales that can provide a broader context for market trends. Thus, focusing on comparable properties in close proximity ensures that the CMA reflects the most relevant and accurate information for pricing the listed property.