1. Choosing the closest homes instead of the closest competitors
Physical proximity matters, but the best comp competes for the same buyer. Match property type, living area, quality, condition, utility, lifestyle, and location before relying on distance alone.
2. Prioritizing recency over comparability
A newer sale is not automatically stronger. A slightly older home of similar size and quality may explain the subject better than a recent but materially smaller or more basic property.
3. Averaging raw sale prices
Unadjusted averages ignore meaningful differences. Adjust relevant sold comps toward the subject, review the indications, and give more influence to the strongest evidence.
4. Using the full price per square foot as a size adjustment
Overall price per square foot includes land, location, structure, quality, and amenities. Living-area differences require an appropriate marginal contribution—not the entire blended figure.
5. Double-counting correlated features
If square footage already captures the space associated with an extra bedroom, a second automatic bedroom adjustment may count the same advantage twice. The same risk appears when renovation, flooring, kitchen, and general condition overlap.
6. Treating marketing language as verified fact
“Water view,” “fully renovated,” and “luxury finishes” may be subjective. Verify photographs, maps, permits, public records, MLS details, and in-person observations before assigning value.
7. Using active list prices as proof of value
Active prices show seller expectations and buyer alternatives, not completed transactions. Consider current price, days on market, reductions, size, and relevance when testing market position.
8. Ignoring concessions and unusual transaction terms
Repair credits, closing-cost assistance, personal-property inclusions, distressed conditions, and non-arm’s-length circumstances can change what a recorded sale price means.
9. Removing a comp only because its result is inconvenient
An outlier deserves investigation. Remove it when the data are wrong or the property is not genuinely comparable—and record that reason. Do not curate the set merely to produce the seller’s preferred answer.
10. Presenting one number without explaining the strategy
Separate estimated value from proposed list price. Show the sold evidence, explain current competition, discuss risk, and let the seller understand the tradeoff between urgency and aspiration.
Use a final quality-control checkpoint
- Verify subject and comp data.
- Confirm at least three relevant solds remain.
- Review every automated and manual adjustment.
- Check for duplicate MLS records and repeated properties.
- Investigate old, distant, or cross-property-type evidence.
- Compare the result with current active and pending inventory.
- State clearly that the CMA is not an appraisal.