When a prospective seller asks for a listing price recommendation, what should a salesperson suggest?

A comparative market analysis (CMA) is the most appropriate recommendation for a listing price when a prospective seller inquires. A CMA involves evaluating the prices of recently sold properties that are similar to the seller’s property in terms of size, condition, location, and features. This method provides a realistic expectation of what the property may sell for in the current market, taking into consideration the latest trends and conditions.

Using recent sale prices alone may not provide the comprehensive picture needed; it lacks the analysis of market dynamics that a CMA provides. The initial purchase price is also not a reliable indicator, as market conditions can change significantly since the property was purchased. An appraisal value, while useful, is typically carried out by an appraiser and may not reflect the most current market conditions immediately prior to listing. Thus, a CMP not only assures the seller of thoughtful consideration of their property’s worth but also supports effective pricing strategy in alignment with market conditions.