What type of listing is the most reliable when conducting a CMA?

When conducting a Comparative Market Analysis (CMA), relying on sold listings is essential because these properties have completed the transaction process and provide the most accurate representation of current market values. Sold listings reflect the end result of negotiations between buyers and sellers, indicating what buyers were willing to pay at the time of sale. These listings offer a concrete, factual basis for pricing because they include finalized sale prices, which are influenced by several market factors, including location, condition, and comparable features.

Active listings, while useful for understanding the current inventory and market competition, do not provide definitive pricing because they represent properties that are still on the market and may not reflect actual sale prices. Pending listings are also informative in showing what is currently under contract, but they do not yet represent a completed sale. Expired listings can provide insight into properties that did not sell, but they also lack certainty on market values since they did not result in a transaction. Thus, sold listings are indispensable for establishing a realistic and reliable price range in a CMA.