Valuation and Comparative Market Analysis
Market value and the approaches
Market value assumes a willing buyer and seller, both informed, neither under duress, with reasonable exposure time. Appraisers use sales comparison (primary for houses), cost (replacement cost less depreciation plus land), and income (direct capitalization: value = net operating income ÷ cap rate, plus the gross rent multiplier). Licensees do not appraise; a comparative market analysis is pricing advice, not a valuation for lending.
Doing a CMA well
Select the most similar closed sales, ideally within six months and close in location, size, age, and condition. Adjust the comparables toward the subject: if the comparable has a feature the subject lacks, subtract; if it lacks something the subject has, add. Adjust the comparable, never the subject, and keep adjustments modest and supported. Then bracket with active listings (the competition) and pending sales (where the market is heading). Price per square foot is a check, not a method.
Vermont specifics
Towns assess property as of April 1 and publish a grand list; the common level of appraisal (CLA) is the town-wide ratio of assessed value to fair market value. To compare an assessment to market, divide assessed value by the CLA. This explains why a house assessed at $300,000 is not automatically worth $300,000 - a frequent consumer question and exam trap.
Traps
Averaging three "comps" without adjusting; using a foreclosure or family transfer as an arm's-length sale; ignoring seller concessions; applying a cap rate to gross rather than net income.
Rule of thumb
Adjust the comparable, bracket the subject, and write down why for every number.