Answers - Real Estate

When looking for the right agent to sell your property, one very important aspect of gauging his or her market knowledge and expertise can be found in how the agent approaches the Comparable Market Analysis (CMA) for your property.

Simply put, the CMA is intended to be an apples to apples comparison. CMAs prepared for sellers typically provide details on three or more nearby, s

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

imilar properties. The CMA data is crucial, in fact the number one component, for determining the market value of your property.

Here are things to look for in the properties that the agent chooses as the comparables for your property. And don't be shy about asking the agent for details on each. A top-notch seller's agent will have conducted in-depth research in selecting the c

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

mparables to present in the CMA.

Terminology First, here is some basic CMA and property listing terminology.

Active: The property is actively for sale and there is not an accepted purchase contract. There may be an offer or negotiations in the works, but an agreement is not finalized.

DOM: The number of days the property has

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

been on the market.

Active Contingent: A purchase offer has been made, the seller has accepted the offer, but there are buyer contingencies that may prevent the sale going through. The most typical contingency is financing—the buyer has yet to secure loan commitment. Other contingencies might be: the inspection period, either personal inspection, professional i

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

nspection or both; examination of financial records for income-producing properties; and/or the buyer's sale or closing of another property (the latter being less common). There might be one or more contingencies.

In some cases, Active Contingent status means that the seller is willing to take backup offers, should the current offer not go through or if there is a "kick-out" cl

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

use in the agreement (a kick-out clause is an agreement between the buyer and seller giving the seller the right to demand contingency removal within a certain number of days; if the buyer cannot perform within that time period, the contract may be terminated).

Pending: Terms of the purchase contract have been fulfilled and the closing of the transaction is nea

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

or nearly assured. Often a listing will move from Active, to Active Contingent, to Pending, and finally to Sold. If an accepted purchase contract is a cash purchase with no or minor contingencies, the status moves from Active directly to Pending.

Original List Price: The initial asking price of the property on the listing's start date.

List Price
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ong>: The current asking price, either the same as the original list, or after price reductions or price increases from the original list amount.

Sold Price: The final amount paid by the buyer to the seller.

Back on Market: The property was temporarily off the market, usually because a purchase offer was accepted, but the deal fell through (e.
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
., the buyer could not obtain financing).

Subject Property: The property you are evaluating in a CMA, either as the seller or the buyer.

Comparable Property: The properties that are being used as the best-fit comparisons to the subject property.

Basic Features Similar or Identical

When the property was built should b
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
about the same time as yours (built between 1999 and 2003 for example)
Overall square footage should be the same or very close to your property; be sure to check the under air square footage and total square footage
The construction type should match yours (for example, concrete block with stucco)
The roofing is similar in type and age (concrete tile
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
bout 5 years old, for example)
Space utilization overall should similar to yours: the number of bedrooms and bathrooms, garage spaces, floor plan design (split bedroom, great room), number of stories, unit floor (condos), a family room (or not), formal dining (or not), lanai/patio…
For waterfront properties, it's also important to assure features such as seawal
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
l, boat dock, and boat lift are similar in quality, age, and size.Overall Condition of the Property Ask about the how well maintained the comparable properties are. If yours is meticulously maintained, a comparable that "needs TLC" or that has roof damage is not a valid comparison. Also important are any upgrades your property, or the comparables, have
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
undergone. If your kitchen is the original and is 15 years old, but a comparable property has an upgraded kitchen with granite countertops and new appliances, an adjustment needs to be made or a different comparable used. Location, Lot, and View

Lot size and type: in SouthWest Florida, the majority of lots are a quarter of an acre (.250). Corner lots, o
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ersize lots, triple lots, and cul-de-sac lots typically command higher prices.
The comparable properties are in your geographic area, typically within a mile radius or so.
View and type of view are similar (waterfront, golf course, wooded area, Gulf of Mexico, bay, basin, lake, pond, parking lot, obstructions, etc.).

If yours is waterfront, pay close attention t
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
o the waterfront types of the comparables. Because there are so much variety in the waterfront properties in SouthWest Florida, especially in the canal systems, this is key. For example, a gulf access home that is an hour from the Gulf, even if similar in construction and other factors, is not going to command as much as a gulf access home that is 20 minutes from the Gulf. Likew
t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
se, a freshwater lot with a lake view is more prized than one on a standard freshwater canal. Intersecting canal views are valued higher, as are properties on wider canals (120-200′). Likewise, check out the details on comparables for the Caloosahatchee River views and Gulf of Mexico beach front views (frontage, direction, obstructions).Adjustments Are So
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
etimes Necessary In some cases, it may not be possible to find nearby properties that carry all of the same features. For example, if the nearby properties are identical in square footage, layout, lot size, age and condition…. but yours has a swimming pool and the others do not, an adjustment can be made to the comparable properties. The adjustment is added (or subtract
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ed) from the comparable. So if the comparable does not have a pool, and yours is brand new, the agent would adjust the comparable value by adding the value of the pool, say $40,000, to bring the comparable up to par with your property (the subject property). Sale Status and Dates The comparable properties should be ones that have recently sold, within the last s
.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
x months or ideally the last three months. If sold data is not available (no similar properties have sold in the neighborhood), then next best is those that have recently gone pending.

Also pay close attention to the DOM, the number of Days On Market. This is calculated from the original list date to the date of closing (when title transfers to the new owner). This is an import
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
nt factor: if the property sold quickly, you know it was priced right. If the property was on the market for 180 days or more (perhaps with several price decreases along the way), the pricing strategy that seller used is circumspect and provides evidence it was priced too high. (Other factors may have delayed the sale, but more often than not, DOM is an indicator of price point.

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Answers - Sellers: What to Look For in the Comparable Market Analysis

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