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!