While preparing a CMA, Leo sees that similar homes closed between $495,000 and $505,000, but a nearly identical active listing at $519,000 has sat on the market for 45 days with little activity. How should Leo use that active listing most appropriately?
Correct Answer
A) Use the listing as evidence of current competition and a possible upper limit, while relying mainly on closed sales for value support
An active listing can help show current competition and may suggest a ceiling if buyers are not responding at that price. But because it is not a closed transaction, it should generally supplement rather than replace the stronger evidence from recent closed comparable sales.
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