What type of information is gathered in the first step of preparing a CMA?

The first step in preparing a Comparative Market Analysis (CMA) focuses on gathering neighborhood and property feature information. This foundational data is essential because it helps the real estate professional establish a clear understanding of the specific characteristics and attributes of the subject property, as well as the overall market in which it exists.

Understanding property features includes factors such as the size, condition, number of bedrooms and bathrooms, and other unique attributes of the property. Additionally, information about the neighborhood—such as the quality of schools, amenities, proximity to services, and prevailing market conditions—provides valuable context that influences property values. This thorough knowledge is vital for making accurate comparisons with similar properties, which ultimately informs the pricing strategy.

While homeowner feedback, government regulations, and market trend analysis are all important elements in the real estate process, they come into play at different stages of a transaction and are not considered the critical first step in the CMA preparation. By starting with property and neighborhood information, agents can effectively lay the groundwork for a thorough and accurate market analysis.