In a Competitive Market Analysis (CMA), which types of properties should a licensee evaluate?

In a Competitive Market Analysis (CMA), it is essential to evaluate a comprehensive range of properties to gain a complete understanding of the market dynamics. By including sold, active, expired, and withdrawn listings, a licensee can derive a well-rounded perspective on property values and market trends.

Sold properties provide concrete examples of what buyers are willing to pay and reflect the current market conditions. Active listings offer insights into the current competition and pricing strategies that sellers are using. Expired listings present valuable information about properties that did not sell, indicating potential pricing issues or other factors that may affect marketability. Withdrawn listings can shed light on properties that were taken off the market for various reasons, which could also inform the analysis regarding market demand or buyer sentiment.

Evaluating only one type of listing, such as just active or sold properties, would not give a full picture of the market. By considering all four types of listings, the licensee can better advise clients on pricing strategies, potential offers, and overall market conditions, making this approach the most comprehensive and effective for conducting a CMA.