Difficulty: Medium

Average Score: 50%

You're doing a CMA on a three-bedroom, two-bath, seven-year-old property. Choose the BEST comp from the following list:

Rationale

a three-bedroom, one-bath, 12-year-old property located a quarter-mile away that sold three months ago.

This property is the best comparable because it closely resembles the subject property in terms of the number of bedrooms and location, despite a slight difference in the number of bathrooms and age. The recent sale date also provides relevant market data for valuation.

A (a six-bedroom, four-bath, new build property located a quarter-mile away that sold six weeks ago) YOUR ANSWER

This option is less suitable as it features significantly more bedrooms and bathrooms than the subject property, which affects its market value and desirability. Additionally, being a new build, it will likely command a higher price than older homes, making it a poor comparison.

B (a three-bedroom, one-bath, 12-year-old property located a quarter-mile away that sold three months ago) CORRECT

This choice is the best comp as it shares the same number of bedrooms and is located nearby, allowing for a more accurate comparison in the local market. The slight age difference and the one-bathroom variance are minor when considering the primary features that influence value.

C (a three-bedroom, two-and-a-half-bath, 15-year-old property located 20 miles away that sold 12 weeks ago) YOUR ANSWER

While this option has the same number of bedrooms, the additional bathroom and greater distance from the subject property reduce its relevance. The age difference also adds uncertainty to the valuation, making it less comparable.

D (a three-bedroom, two-bath, seven-year-old property located a quarter-mile away that sold two years ago) YOUR ANSWER

Although this property is similar in age and location, the sale date being two years ago makes it less reflective of the current market conditions, potentially skewing the comparative analysis.

Conclusion

In a Comparative Market Analysis (CMA), selecting the most relevant comparables is crucial for accurate property valuation. The best choice here is the three-bedroom, one-bath property sold three months ago, as it aligns closely with the subject property in key aspects, such as location and bedroom count. The other options vary significantly in size, age, or market timing, making them less effective for this analysis. Selecting appropriate comparables ensures a reliable estimation of value for the property in question.

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