Consider where the property is located in relation to things like shopping and entertainment centers, grocery stores, and places of employment. Is it located in an urban, suburban, or rural area? The idea here is that having quick, convenient access to certain amenities and resources is something that’s generally valued highly by prospective buyers.

I also recommend taking note of whether the property is located in a flood zone. All things being equal, most buyers are likely to view this as a slight negative.

Depending on the market you’re located in, newer properties are generally viewed more favorably. This is because the homes are more likely to be built to comply with the most up-to-date building and safety codes, as well as utilize more modern materials. Some buyers may also consider the fact that newer homes are less likely to require repairs or maintenance in the near-term.

Make note of the type of property you’re evaluating, such as whether it’s a single family home, condominium, multi-unit property, townhome, attached versus detached property, and whether it’s located in a planned unit development (PUD).

This will be important when you’re looking for comparable homes because in most instances, a buyer won’t be interested in anything that’s too drastically different from what they initially had in mind. In other words, someone looking to buy a 1-unit single family home probably won’t be interested in buying a 4-unit property.

This might require a physical inspection of the property, but you’ll want to determine what the architectural design of the home is like. The idea here is that when you look for comparable properties, you’ll want to select those that are similar in design as those are the properties most likely to appeal to the same type of buyer. You’ll also want to ensure that the design is typical and conforms to the neighborhood.

This can be broken down into the gross living area, total square footage to include things like an unfinished basement, as well as the total lot size to include things like a backyard or other outside areas.

The number of bedrooms and bathrooms is a critical factor that will impact the price of a home. In addition to the number of rooms, however, you should also consider the type and features of each. For instance, a bedroom with a five-piece en suite bathroom is something that would be considered more valuable than a standard bedroom. Similarly, full bathrooms that have a toilet, sink, and shower, are considered more valuable than half bathrooms that may not have a shower or bathtub.

Amenities and special features that can add value to a property can include things like solar panels, fireplaces, patios, decks, and pools. If the property is located in a homeowner’s association, it can also include things like tennis courts, basketball courts, and an on-site gym.

Car storage can include things like a carport, assigned parking space, or a garage. In addition to the type of storage available, take note of whether it is attached or detached to the property, and how large it is. Generally speaking, attached garages add the most value to a home, followed by a carport and assigned parking space.

Having standard utility connections for things like internet, water, electric, and gas is something that can easily be taken for granted, but it’s still worth checking, especially for rural or older properties. Verifying that the property has the proper hookups for appliances, such as a refrigerator, oven, dishwasher, microwave, and washer/dryer can also avoid any last-minute surprises when showing the property to prospective buyers.

All things being equal, properties with a beneficial view have the ability to fetch a higher purchase price. Typical examples of a beneficial view can include a property that overlooks a city, park, golf course, lake, or mountain. Adverse views are often regarded as properties that only have a view of a parking lot, street, railroad tracks, high tension wires, garbage dumps, or commercial buildings.

Property rights can either be fee simple or leasehold. Fee simple is the most common and grants full permanent ownership of the property and any buildings on it to the owner. A leasehold, on the other hand, grants only temporary use of the land.

For homeowners, fee simple is considered more desirable, and is something that will provide more value versus a similar property offered as a leasehold.

The amount of HOA dues and property taxes affect a home’s affordability. All things being equal, higher taxes and HOA dues tend to correlate to lower sales prices for the home. HOA dues may also include special assessments, something that can further detract from a home’s value.

While paying more fees is not ideal, do keep in mind that the cost of HOA dues can sometimes be offset by the amenities offered. Common examples include a pool, tennis courts, basketball courts, and gym facilities.

A home’s value is often tied to market trends in the specific neighborhood it’s located in. Completing a thorough CMA should include an evaluation of the trend of property values, supply and demand of homes in the area, and total marketing time.

• Property value trends: Look to see whether property values have been increasing, decreasing, or have been stable for the past 3, 6, and 12 months. You can take a look at closed sales as well as current active listings. I also recommend researching any external factors that might explain fluctuations in property values.
• Supply and demand: Here, you’ll want to determine whether there is a shortage or over supply of homes. In markets that have a shortage of homes for sale, buyers should expect to pay more. On the other hand, markets that have an over supply of homes for sale will see buyers being able to more easily negotiate prices.
• Marketing time: This is the amount of time needed to close a home after listing it for sale. Neighborhoods exhibiting shorter marketing times, typically under 3 months, are a good indicator that it’s easy to find buyers. Neighborhoods with longer marketing times, 6 months or longer, could be an indicator that there’s a shortage of buyers or an over supply of homes for sale.

While it might seem silly to say, homes in better condition typically fetch a higher sales price. If you’re doing a CMA, check to see if there are obvious repairs needed to the property. This includes the presence of any health or safety hazards, as well as other physical deficiencies that could impact the livability or structural integrity of the home. These are items that could also be tied to the property’s age.

Other adverse items may include environmental conditions, easements, or encroachments that limit or restrict the use of the property.

Not necessarily. Determining a property’s value is part art, part science. Different buyers place a different value on certain features and characteristics. Because of this, it’s not uncommon to come to a slightly different conclusion on a property’s value.

A CMA helps determine what a property is worth. If you are a listing agent, this can help you figure out what sales price to set in order to attract the largest number of buyers. As a buyer’s agent, this can help you determine whether a property is within your client’s price range, and what would be considered a competitive offer that a seller is likely to accept.

This can vary by market, but I recommend at least 3 closed sales within the last 0 to 12 months, and at least 1 or 2 active listings. If you’re not able to find similar properties or homes that have recently sold, you may want to up the number of comps to support your opinion of value in the CMA report.

The main difference between a CMA and an appraisal is the intended purpose. A CMA is used primarily to determine a home’s listing price to attract as many buyers, as well as an appropriate offer price to increase the likelihood of being selected by the seller. An appraisal is performed by a licensed appraiser, typically for the purposes of determining the value of the property from a lending and insurance perspective.

The location of your comps is perhaps the single most important factor in ensuring an accurate CMA. Location determines how close it is to schools, shopping centers, employment areas, and more. These are items that most buyers place a high value on, and will therefore have a large impact on the value of the home.