Software Features

BROKERAGE SERVICES

Software Features

Property Data

Research properties and their owners, compile lists, and more.

MLS Comps

A multiple-listing service comparable tool.

Listings

List your properties with Propelio Realty for incredible savings.

Short Sales

If you have an underwater property, our experts can help.

For Education

Blog

Interesting and valuable articles from Propelio and the industry.

Academy

Real Estate education platform led by a team of professionals.

Propelio TV

A channel that gives daily updated archive of our live video.

Discover Propelio

About Us

Get to know Propelio better – explore our story and mission.

Map Coverage and Brokers

Shows MLS coverage and broker transactions in your state.

Referral Program

Share Propelio with friends and family to earn exciting rewards

Template is not defined.
How to Run Comps for a Comparative Market Analysis (CMA) Report Using Propelio
4-minute read

How to Run Comps for a Comparative Market Analysis (CMA) Report Using Propelio

A Comparative Market Analysis (CMA) is an essential tool in real estate that helps determine the value of a property by comparing it to similar properties recently sold in the same area. Selecting the right comparables (comps) is crucial for an accurate CMA. Propelio, a leading real estate software, can significantly streamline this process.

Here are the best practices to ensure the selection of appropriate comps for your CMA report using Propelio:

1. Understand the Property

  • Property Type: Ensure you’re comparing similar property types (e.g., single-family homes, condos, townhouses). Propelio allows you to filter properties by type easily.
  • Square Footage: Look for properties with a similar size, typically within 10-20% of the subject property’s square footage. Propelio’s detailed property data helps you find exact matches.
  • Number of Bedrooms and Bathrooms: These should be similar, as these features significantly impact value. Propelio’s comprehensive listings include all the necessary details.
  • Age of the Property: Compare properties built within a similar timeframe, usually within 5-10 years.
  • Condition and Upgrades: Consider the condition of the property and any recent upgrades or renovations.

2. Geographical Proximity

  • Neighborhood Boundaries: Select comps within the same neighborhood or a similar one with comparable characteristics. Propelio’s mapping feature helps you visualize and select appropriate areas.
  • School District: Properties in the same school district are preferable, as school quality can affect property values.
  • Distance: Typically, comps should be within a 1-mile radius, but this can vary depending on the density of the area.

3. Recent Sales

  • Time Frame: Look for sales within the last 3-6 months. The more recent, the better, to reflect current market conditions.
  • Market Trends: Be aware of local market trends (e.g., rising or falling markets) that might require adjusting the time frame. Propelio’s market analytics tools can provide insights into these trends.

4. Similar Market Conditions

  • Market Types: Compare properties sold under similar market conditions (e.g., standard sales, short sales, foreclosures).
  • Days on Market: Consider how long comps were on the market before selling, as this can indicate market demand.

5. Adjust for Differences

  • Upgrades and Features: Adjust for differences in features such as a pool, finished basement, or updated kitchen.
  • Location Adjustments: Adjust for location differences within the same area, such as proximity to main roads or amenities.

6. Use Multiple Comps

  • Quantity: Use at least 3-5 comps to ensure a balanced and accurate CMA.
  • Variety: Include a mix of recently sold properties, active listings, and expired listings to understand the full market picture. Propelio’s database provides a wide range of listings to choose from.

7. Evaluate Market Conditions

  • Supply and Demand: Consider the local supply of and demand for similar properties.
  • Economic Factors: Be aware of broader economic conditions that might impact property values.

8. Leverage Technology and Tools

  • MLS Data: Use Multiple Listing Service (MLS) data for accurate and up-to-date information. Propelio integrates MLS data to provide the most reliable comps.
  • Automated Valuation Models (AVMs): Use AVMs to supplement your analysis but rely on human judgment for final adjustments.
  • Real Estate Software: Utilize real estate software tools like Propelio that can provide comprehensive data and analytics.

9. Professional Judgment

  • Experience: Leverage your experience and local market knowledge.
  • Collaboration: Consult with other real estate professionals if needed for a second opinion or additional insights.

10. Document Your Process

  • Transparency: Keep detailed notes on why each comp was selected and any adjustments made.
  • Consistency: Follow a consistent methodology for selecting comps to ensure reliability in your CMAs.

Wrap-up

Selecting the right comps for a CMA report involves a combination of local market knowledge, careful analysis, and professional judgment. By following these best practices and leveraging the power of Propelio, you can ensure that your CMA is accurate, reliable, and reflective of the true market value of the property. This not only helps in setting a competitive price but also builds trust with clients, leading to successful real estate transactions.

Propelio’s robust tools and features make it easier than ever to select the best comps and create accurate CMA reports, ensuring you stay ahead in the competitive real estate market.For more information on how Propelio can enhance your real estate business, visit Propelio now!

Leave a Reply

Your email address will not be published. Required fields are marked *

Submit a comment

Your email address will not be published. Required fields are marked *

Related

A Comparative Market Analysis (CMA) is an essential tool in real estate that...

When you buy and investment property to flip in a rural, tertiary market,...

If you are asking “What are doing that’s working,” you are asking the...

Finding the best lead list, curating it to find the motivated sellers, marketing...

There are three times as many people on Facebook as on Instagram. Facebook...

Read more..

A Comparative Market Analysis (CMA) is an essential tool in real estate that...

When you buy and investment property to flip in a rural, tertiary market,...

If you are asking “What are doing that’s working,” you are asking the...

Finding the best lead list, curating it to find the motivated sellers, marketing...

There are three times as many people on Facebook as on Instagram. Facebook...

Elevate your strategies with expert advice now!

Seize the moment to stay informed. Subscribe now for the latest updates!