So what’s considered similar?
Ah, that’s the question. There’s a tremendous number of variables, and a skilled and knowledgeable REALTOR must balance these variables to come to a sound, reasonable conclusion. In general, an Agent will start with the “broad brush strokes”, and work to greater and greater levels of detail. It might look something like this:
1) Location (neighborhood), Sq. Footage, # of bedrooms, # of baths, parking, basement, and house style and age.
2) Next, level and quality of finishes, yard size, and curb appeal.
Armed with these characteristics, the Agent will look at all Active, Sold, and Expired listings within a specified time period and, if necessary, make adjustments for time and changing market conditions.
Ideally, there would be several comparable homes in the same area that have sold recently. This would make the CMA more accurate and relevant. In some cases, it can be a bit harder, and Agents must dig deeper, and make more adjustments to account for differences.
With so many variables to consider, it’s no wonder why two CMAs prepared by two different Agents might come out differently. Usually, however, they’re pretty close and certainly relevant in assessing reasonable market value.