What does a broker consider when compiling a competitive market analysis?

When a broker compiles a competitive market analysis (CMA), the primary focus is on comparable properties, commonly referred to as "comps," that are similar in nature to the property being assessed. Specifically, option B is the correct choice because it emphasizes the importance of selecting properties that are located near the subject property. Proximity is crucial because it allows for a better understanding of the local market conditions, pricing strategies, and buyer preferences specific to that area.

The characteristics of the comparable properties, such as size, age, condition, and amenities, should closely match those of the property being listed to ensure the analysis is as accurate and relevant as possible. This approach helps in determining a competitive listing price that is reflective of current market trends, thereby supporting effective marketing and negotiation strategies.

Factors like properties located in different cities would not provide a relevant comparison due to differences in market dynamics. Similarly, while focusing only on recently sold properties is important, it is not comprehensive since active listings, pending sales, and properties that were taken off the market can also provide valuable insights. Lastly, limiting the analysis to properties that are at least 10% larger fails to consider smaller comparable properties, which can be crucial for a well-rounded assessment. The objective of the CMA