When performing a CMA, which statement is true?

When performing a Comparative Market Analysis (CMA), the correct approach is to make adjustments to the comparable properties, not the subject property. This is because the goal of the CMA is to provide an accurate value for the subject property by comparing it to similar properties that have recently sold.

Adjustments are made based on differences between the subject property and the comparables in various attributes such as square footage, number of bedrooms and bathrooms, location, and any special features or upgrades that affect value. By adjusting the comps, you align them closer to the subject property’s value, allowing for a more precise estimation of what the subject property is worth in the current market.

The other choices are less effective for a CMA. Including all sales over the last three years can lead to outdated data, making the analysis less relevant to current market conditions. Including competing properties across a wide radius, like a 10-mile span, might introduce irrelevant data that doesn’t accurately reflect local pricing. Finally, relying solely on properties identical in square footage can limit the analysis and overlook other important factors that contribute to market value.