When reviewing the comparable properties on a CMA report, you will want to identify properties that match your subject property as closely as possible. This provides you with additional insight and metrics that can then be used to correctly price your listing.
However, comparable properties may not always be accurate. For example, you may pull properties with a similar bed and bathroom count, but a vast difference in square footage. In order to ensure that we're providing you with the most accurate comparable results, we're excited to introduce Comparable Adjustments - an additional CMA tool that allows you to not only identify individual features, but to use that data to adjust the pricing of your comparables.
Understanding Adjustments
When comparing properties, it is important to note that no two properties are exactly alike. To get the most accurate comparison, your comparables' pricing should reflect features that the subject property does or does not include.
For instance, let's say that your subject property has a landscaped yard with a pool and tree house. Your comparable property has a similar square footage and bed count, but has an empty dirt yard.
Based on this information, we know that the two properties are not comparable despite having similar square footage and bed count. The comparable property may also have been built at the same time or is located in the same area, but the overall properties are drastically different due to the lack of a landscaped yard.
Each individual feature between the subject and comparable property should be measured individually to understand if the comparable property is inferior or superior to the subject property based solely on that feature.
If the feature of your comparable property is inferior to the subject property due to having fewer matching features, you will want to raise the price of the comparable.
If the feature of your comparable property is superior to the subject property, you will want to lower the price of the comparable.
Viewing Adjusted Pricing
After making your pricing adjustments, you can view both the actual and adjusted pricing for your comparables within the CMA itself on the main graph. When presenting your CMA to a prospective contact, you'll be able to toggle between each option and view each adjustment separately.
Actual Price
You can view the actual price of a comparable by selecting the Actual Price toggle. The pricing will be displayed in italics.
Adjusted Price
The Adjusted Price can be viewed by selecting the associated toggle. The adjusted pricing will be displayed next to the actual price in italics (ADJ).
Have more questions? Please reach out to Customer Support via the blue chat bubble to the right or by emailing support@insiderealestate.com!