Comparable Property Selections
The accuracy of the CMA is completely dependent on quality comparable selections. When and where the property was sold are major factors in choosing a comparable selection. The real estate market fluctuates quickly, especially when considering time and location. Therefore, to get a dependable price estimate for your home, it is necessary to find recently sold comparable properties that are as geographically close to your house as possible.
But it is not enough to just find comparable properties that were sold recently and close to you. If a house five miles from you sold yesterday you may be thinking it would be the perfect property to use for a comparable selection. Not exactly. If that house that sold yesterday has four bedrooms, three bathrooms and a fenced in backyard, while your house is two bedrooms, one and a half bathrooms with no yard space, that is not necessarily a good choice for a comparable selection. While adjustments can be made it is important to keep in mind that qualities of comparable selections need to match up to qualities of your home.
Estimated prices have the potential to vary drastically depending on what an agent chooses as comparable selections. When finding a listing agent, sellers will often go with the agent that gives them the highest estimated price for their home. Be wary of this though. Often times when a price seems to good to be true, it is.
