The real estate market is ever changing and now more than ever buyers are educating themselves to the process. Consumers more than ever before are recognizing the importance of doing some homework before buying or selling any real estate. Because of this increase in buyer sophistication, it is becoming increasingly important for the seller to price their property correctly. In days gone by the agent might just quote what other properties were selling for in the neighborhood in which the buyer showed interest. This is in no way indicative of fair market value.
Market value is based upon what a buyer has actually paid for a property.
A Comparative Market Analysis should reflect sales of like properties in the immediate area of the subject property within the last 6-8 months. Extraneous factors such as replaceability of property, uniqueness of location, etc. Property values are NOT dictated by what the seller has invested in the home, nor by what they need to receive from the property. These factors are not applicable to setting a sales price. It is the Realtor's job to tactfully prepare the seller for this fact and help them realize the importance of pricing the property at market.