What should an agent avoid while conducting a CMA?

Selecting outdated comparables while conducting a Comparative Market Analysis (CMA) can significantly skew the results and lead to inaccurate pricing recommendations. A CMA aims to determine a property's value based on recent sales of similar properties in the same area, reflecting current market conditions. Utilizing comparables that are outdated means relying on data that may not accurately reflect the current market trends, buyer behaviors, or economic conditions.

For instance, if an agent chooses properties that sold several years ago, there might have been significant changes in the market that those sales do not account for, such as price appreciation, shifts in demand, or changes to local amenities. This can lead to pricing that is either too high, deterring potential buyers, or too low, resulting in lost revenue for the seller.

In contrast, including properties with similar characteristics, using current market data, and comparing properties in the same neighborhood are essential practices that help ensure the CMA is accurate and reliable. These approaches provide a more relevant and timely assessment of the property’s value, allowing agents to make informed recommendations to their clients.