Question

Jane is preparing a CMA for a seller’s property. She chooses three comparables and makes the adjustments to take into account each one’s differences with the seller’s property. Comparable 1 has an adjusted value of $289,500. Comparable 2 has an adjusted value of $295,700. Comparable 3 has an adjusted value of $291,300. How will Jane arrive at an estimate of the value of her seller’s property?

Answer 1

Jane will arrive at an estimate of the value of her seller’s property by calculating the average for the 3 comparable adjusted values that she has obtained.

This means that the value of the property should be around $292,167.

Step-by-step explanation:

a) Data and Calculations:

Adjusted values of:

Comparable 1 = $289,500

Comparable 2 295,700

Comparable 3 291,300

Total values = $876,500

Average value = $292,167 ($876,500)

b)A comparative market analysis (CMA) is a series of steps followed to estimate a property's value based on some recently sold and similar properties at same locations as the property being offered for sale or purchase. It is used by the real estate agents and brokers to create their CMA reports, which help the real estate sellers to set the best listing prices for their properties. It is also used by buyers to help them make competitive offers for homes on sale.