Pending Price Not a Fair Indicator
In the Feb. 21 “Starting Out” column (“CMAs Are Helpful for Buyer and Seller”), Dian Hymer states, “Pending and sold listings give the most reliable indicator of current market price.”
In practice, the sold listings by themselves are the most reliable indicator of current market price.
Because the sales price is not disclosed until the sale is complete (escrow is closed), the pending category does not give a good measure of the sales price.
Home shoppers need to be made aware that the price listed in this category is the listing price, which is not necessarily indicative of the final sales price.
Further, while it may seem safer to receive a CMA from an agent working “actively in the area where the property is situated,” the effort put out by an agent in preparing a CMA is even more critical.
Whether the agent covers a local area or a broad area, the following factors are important in preparing a CMA:
1) Did the agent use the MLS alone or also search title records for the sold categories?
2) Did the agent preview the other properties in the active or pending categories?
3) Did the agent explain any anomalies in the analysis?
4) Did the agent present the data in a comprehensive package?
While my specialty is South Orange County, I have successfully prepared CMAs for both buyers and sellers throughout Orange County. The amount of effort required is greater but just as effective.
Coldwell Banker Realty