Interpreting a Comparative Market Analysis
There are four important categories to look at when doing a CMA (Comparative Market Analysis)
1. Active - These are the homes that are currently on the market. This category shows you exactly which homes you will be competing against. Take a careful look at these homes to determine what things about them make them more attractive than your property to a potential buyer. Try to determine what will make you the most attractive opportunity on the market in terms of price and value.
2. Pending - A contingent or pending property is one that is under contract, but has contingencies that can let the buyer cancel, such as financing, home inspection, and having another home to sell. Until a property actually closes, the sales price is not public information so these may not be the best comparables to use when determining your sales price.
3. Sold - These are the winners! Sold data is the most solid information because it tells you exactly what the market was willing to reward sellers with. By looking carefully at these homes, you should be able to get a fairly good value range of what the market might reward you with.
4. Expired - These are the losers, the properties that were rejected by the market, and did not sell before the listing period expired. All of these properties were priced above what the market determined their value to be. You can use these to see how NOT to price your own home.