Kentucky Real Estate Law & Regulations

Chapter 1

Kentucky Real Estate Law & Regulations

Course: Kentucky Real Estate Exams Prep
Subject: Kentucky State Sales Associate Exam Prep
Chapter: Valuation Amp Listing Property Of Kentucky National Sales Associate Exam Prep

CMA Purpose & Components:

• Primary Goal: To provide data-driven guidance to a seller for setting a competitive list price. A price too high leads to stagnation; too low leaves money on the table.
• The "Three Market" Analysis:Active Listings: The current competition. What other sellers are asking for similar homes. This sets the ceiling for pricing.Pending Sales: Properties under contract. These indicate the price point where current demand is meeting supply. They are more relevant than actives but the final sale price is not yet public.Sold Properties (Last 3-6 Months): The most critical data. This reveals what buyers were actually willing to pay in the recent past. It establishes the market floor and provides the best evidence of true market value.
• Active Listings: The current competition. What other sellers are asking for similar homes. This sets the ceiling for pricing.
• Pending Sales: Properties under contract. These indicate the price point where current demand is meeting supply. They are more relevant than actives but the final sale price is not yet public.
• Sold Properties (Last 3-6 Months): The most critical data. This reveals what buyers were actually willing to pay in the recent past. It establishes the market floor and provides the best evidence of true market value.
• Case Study: An agent in Lexington is listing a 3-bed, 2-bath ranch. They prepare a CMA showing: 5 similar active listings priced from $275,000 to$295,000; 2 pending sales at $270,000 and$285,000; and 3 recent solds at $265,000,$272,000, and $269,000. This data suggests a list price around$279,000 would be competitive, likely generating offers near the recent sold range of $270k-$272k.