Secrets Real Estate Agents Hide Comparative Market Analysis Decoded

A comprehensive CMA includes several critical components:

1. **Comparable Properties (Comps):** These are similar homes in the area that have been sold recently. Factors like location, size, condition, and features are considered to find the best matches.

2. **Market Trends:** This includes data on how quickly homes are selling in the area, the average price per square foot, and how these numbers have changed over time.

3. **Property Adjustments:** Adjustments are made to account for differences between the subject property and the comps. For example, if a comp has a new kitchen and the subject property does not, the agent might adjust the price downward for the subject property.

4. **Local Market Conditions:** Economic factors such as interest rates, employment rates, and local economic growth are considered to understand the broader market context.