What does 'comparative market data' refer to?

Comparative market data refers specifically to a collection of recent sales and listings of similar properties in a specific area. This type of data is vital for real estate professionals as it helps them assess the market value of a property by comparing it to others that are similar in terms of size, location, amenities, and condition. By analyzing this data, brokers and agents can provide accurate property valuations, inform their pricing strategies, and help clients make informed decisions regarding buying, selling, or investing in real estate.

Using recent sales and listings ensures that the analysis reflects current market trends, which may shift over time due to changes in demand, economic conditions, and other factors. This approach is fundamentally different from simply looking at historical sales data or valuing properties based on their original purchase price, as those methods do not account for current market dynamics. Additionally, a database of client preferences and feedback does not pertain to property valuations and instead focuses on understanding client needs, which is a different aspect of the real estate process.