What is the purpose of including sold and active properties in a Comparative Market Analysis (CMA)?

Including sold and active properties in a Comparative Market Analysis (CMA) serves the crucial purpose of ensuring relevance in price comparisons. When evaluating properties, it is essential to consider both what is currently on the market (active listings) and what has recently sold. This practice allows for a more comprehensive understanding of the local market dynamics and helps identify trends in pricing, which is vital for determining a competitive and realistic listing price.

Active properties provide insight into current market competition, helping to set strategic pricing for a seller's property. Meanwhile, sold properties offer concrete examples of what similar homes have recently sold for, enabling more accurate price calculations. This combination of information ensures that the CMA reflects the actual market conditions, making it an essential tool for buyers and sellers to make informed decisions.