comparative market analysis (CMA)
A list of properties in an area similar to the subject property that are currently listed, have recently sold, or have failed to sell in a reasonable marketing period -basis for "opinion of value
broker price opinion (BPO)
an estimate of value prepared by a licensee, usually for a lender who has a mortgage on a distressed property
opinion of value
estimate of a property's market value prepared by a licensee when listing or selling property-based on CMA
approaches to value for appraisals
cost, market, income
appraisals used for
financing houses
CMAS used for
pricing listings
BPOs used when
property is already owned by the lender or in default-often used for commercial properties
approach to value for CMA
market
approach value to BPO
market, income
currently on the market houses (CMA)
-show sellers their competition-seller should be aware asking prices are typically higher than the selling prices
recently sold houses (CMA)
review of properties that have sold in the previous 12 months-most reliable
recently expired listings
shows the seller that buyers resist overpriced listings
best sources for comparable properties
-MLS-company files-public records-other licensees
common elements of a comparison
-location-size and shape of lot-landscaping-construction quality-style-design-age-sq footage of GLA-structure measurements-number of rooms, bedrooms, bathrooms, kitchen-other space-condition -garage-other improvements
curb appeal
impression a buying or renting prospect receives, good or bad, upon seeing a property for the first time
adjusting for differences in a CMA
CBS CIA-if Comparable is Better, Subtract-if Comparable is Inferior, Add
CMA attachments
-photo of comparable properties-plat map of the neighborhood
steps of a CMA
1. collect information about the subject property2. get information about property sales3.measure exterior of the home and prepare a sketch4. gather 7 properties sold, 4 currently listed, and 3 that have expired5. adjust comparable property's price6. estimate market range