Q&A Session

Q1: What exactly is a Comparative Market Analysis (CMA), and why does it matter?

Answer
A Comparative Market Analysis (CMA) is the process of evaluating a property’s value by comparing it to similar properties, called “comparables” or “comps” that have recently sold, are currently listed, or were taken off the market in the same area.
CMA helps you:

• Determine a fair purchase or sale price
• Negotiate with confidence
• Identify market trends and opportunities
• Avoid costly mistakes in both hot and cooling markets

Q2: What are the key steps to conducting a CMA in Nigeria?

Answer
Here’s a step-by-step guide:

1. Define the Subject Property: Gather details, such as location, size, number of bedrooms/bathrooms, amenities, age, and condition.
2. Identify Comparable Properties: Look for recent sales (ideally within the last 3–6 months), current listings, and expired listings in the same neighborhood or estate. The closer in features and location, the better.
3. Adjust for Differences: No two properties are identical. Adjust for factors like renovations, plot size, view, finishing quality, and unique amenities (e.g., swimming pool, security, generator).
4. Analyze Pricing Trends: Calculate the average price per square meter among comps. Note if prices are trending up or down in the area.
5. Estimate the Value: Use your adjusted data to estimate a realistic market value for your subject property.

Q3: What tools or data sources can I use for a CMA in Nigeria?

Answer

• Property portals: Check platforms like PropertyPro, PrivateProperty, and Nigeria Property Centre for recent sales and listings.
• Local agents: Leverage their market knowledge and access to off-market deals.
• Professional valuers: For high-value or complex properties, consider a formal valuation.

Q4: What are common mistakes to avoid when conducting a CMA?

Answer

• Using outdated or irrelevant comps (e.g., from different neighborhoods or market cycles)
• Ignoring unique features or upgrades
• Overlooking market shifts (e.g., new infrastructure or policy changes)
• Relying solely on asking prices instead of actual sale prices

Q5: How does CMA help in fractional, off-plan, or completed project investments?

Answer

• Fractional: Ensures you’re buying into a property at a fair market value, not an inflated price.
• Off-plan: Helps you project future value by analyzing trends in similar completed projects.
• Completed: Guides your negotiation and resale strategy, maximizing your returns.

Key Takeaways

• CMA is your compass for smart property decisions, buying, selling, or investing.
• Use recent, relevant comps and adjust for differences to get a true market value.
• Always factor in local trends, infrastructure, and upcoming policy shifts.
• For high-stakes deals, don’t hesitate to consult a professional valuer.

My Final Word

In a fast-moving market like Abuja’s, knowledge is your edge. Whether you’re investing through our soon-to-launch fractional platform or buying your dream home, mastering CMA puts you in control and protects your investment.

Are you ready to make data-driven property decisions?
Drop your questions in the comments or email [email protected] for personalized guidance or a professional CMA on your next deal.

Stay tuned for next week’s edition.

Weekly Poll

Have you ever used a CMA before making a property decision?
A) Yes, and it helped me
B) No, but I want to learn
C) I rely on agents/valuers
Cast your vote below! 👇