Question 1

What is a market analysis in real estate?

Accepted Answer

A market analysis (also called a comparative market analysis or CMA) is an evaluation of a property’s estimated value based on recent sales of similar properties in the same area. A market analysis includes: comparable sales ("comps"): recently sold properties similar in size, age, condition, and location, active listings: currently available properties that will compete with the subject property, expired listings: properties that did not sell (indicating overpricing or market resistance), price adjustments: modifications to the comparable sale prices to account for differences (lot size, square footage, condition, amenities), and a recommended price range: the estimated market value or listing price. A market analysis is not the same as a formal appraisal (which is conducted by a licensed appraiser using standardized methods).

Question 2

Who prepares a market analysis in Florida?

Accepted Answer

Preparation: in Florida, market analyses are typically prepared by: licensed real estate agents (as part of their listing presentation; they use MLS data, public records, and their market knowledge), real estate brokers (who may provide more detailed analyses for commercial properties), and appraisers (who prepare formal appraisals using standardized methods and are licensed by the Florida Department of Business and Professional Regulation). Important distinction: a real estate agent’s CMA is an opinion of value based on market data, not a formal appraisal. Under Florida law, only licensed appraisers can perform "appraisals" as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). Agents should clearly label their CMAs as opinions of value, not appraisals.

Question 3

What data sources are used for Florida market analyses?

Accepted Answer

Data sources: Multiple Listing Service (MLS): the primary source of residential sales data in Florida (accessible to licensed real estate agents), county property appraiser’s office: public records of property sales, assessed values, and property characteristics, county clerk’s office: recorded deeds, mortgages, and other documents, commercial data services: CoStar, LoopNet, and other platforms for commercial property data, title companies: closing data and title records, and public data: building permits, zoning information, and demographic data. For Florida-specific analysis: the Florida Association of Realtors publishes monthly market statistics by county, the U.S. Census Bureau provides demographic and housing data, and local chambers of commerce and economic development agencies provide economic data.

Market Analysis

Real Estate Market Analysis

Components

Who Prepares

Data Sources

Related Terms

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