Final answer:
A comparable sale for a CMA needs to consider factors like location, condition, and market conditions. A property that sold faster and at full price may not be comparable to one that took longer to sell at a discounted rate, taking into account overall housing price trends.
Step-by-step explanation:
The question asks whether a property that sold at full asking price after two weeks on the market is a good comparable sale for a competitive market analysis (CMA) when the subject property is selling at 10% below asking price after three months on the market. To determine if a property is a good comparable, it’s important to consider various factors like location, property condition, market conditions, and how quickly the property sold. Housing prices can be influenced by local differences and market trends, which are visible in the median average sales price of a house. For instance, housing prices have generally seen an average financial return of 3.1% per year from 1990 to 2016, showing a steady increase over time. Thus, a property that sold much more quickly at full asking price may not be the best comparable if the market condition for your subject property is different or if there is a significant difference in how long it took for the property to sell.