Before putting a home on the market, savvy home sellers obtain a comparative market analysis, also referred to as a CMA. Standard comparative market analysis reports contain the following data:
Active Listings
Active listings are homes currently for sale. These listings matter only to the extent that they are your competition for buyers. They are not indicative of market value because sellers can ask whatever they want for their home.
Pending Listings Pending sale homes are formerly active listings that are under contract. They have not yet closed, so they are not yet a comparable sale. We do not know the actual sold price until the transaction closes. However, pending sales do indicate the direction the market is moving.
Sold Listings
Homes that have closed within the past six months are your comparable sales. These are the homes used when appraising your home, along with the pending sales (which will likely have closed by the time your home is sold).
Expired Listings This group reflects the highest median sales price because they did not sell and were probably unreasonably priced. Some expired listings may appear as an active listing, listed by a new agent at a new price. Listings also expire because they were not aggressively marketed or because the home was in need of repairs.
Examining Comparable Sales Comparable sales are those that most closely resemble your home. It is difficult to compare a tri-level home to a single-story home. Some of the things I look at when examining comparable sales include:
