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🧭 What Is a Comparable Market Analysis (CMA)?

 


A Comparable Market Analysis, or CMA, is a professional evaluation of a property’s current market value based on the recent sale prices of similar homes — called comparables or “comps” — in the same area.

Real estate professionals use a CMA to help sellers determine a realistic listing price and help buyers make competitive offers.

🧩 Step-by-Step: How a CMA Is Done

1️⃣ Gather Property Details

First, the agent gathers all relevant information about the subject property, including:

  • Address and neighborhood

  • Square footage (above and below grade)

  • Lot size

  • Age and architectural style

  • Number of bedrooms and bathrooms

  • Condition, updates, and special features (garage, basement, pool, etc.)

This establishes the baseline for comparison.

2️⃣ Select Comparable Properties (“Comps”)

Next, the agent identifies recently sold homes that are most similar to the subject property.
 The best comps are:

  • Located within the same neighborhood or within a 1–2 mile radius

  • Sold within the last 3–6 months (the more recent, the better)

  • Close in square footage (usually within ±15–20%)

  • Similar in age, style, and lot size

If needed, the agent may also consider active and pending listings to understand current competition and market trends.

3️⃣ Adjust for Differences

No two homes are identical — so adjustments are made to account for differences between the subject property and each comparable.

For example:

  • If the comp has an extra bedroom, subtract value.

  • If the subject property has a finished basement and the comp doesn’t, add value.

  • Adjustments also account for lot size, location within the neighborhood, garage spaces, and upgrades (kitchen remodels, new roof, etc.).

These dollar adjustments are based on local market data and appraiser standards.

4️⃣ Analyze the Adjusted Prices

After adjustments, the agent looks at the adjusted sale prices per square foot of the comps.
 They’ll identify a price range that reflects current market conditions, buyer demand, and seasonality.

5️⃣ Determine a Pricing Strategy

Finally, the agent recommends a list price range.

This recommendation takes into account:

  • The adjusted CMA results

  • Current market trends (supply, demand, interest rates)

  • The seller’s timeline and motivation

Pricing may lean slightly lower for a quick sale or higher if the home is unique and inventory is tight.


📊 Example:

If similar homes sold between $380,000 and $400,000, and your home is in slightly better condition, the suggested listing price might be $395,000–$405,000.

💬 How a CMA Differs from an Appraisal

CMA

  • Prepared by a licensed REALTOR®

  • Used to guide listing or offer price

  • Based on market activity and agent insight

  • Usually free for clients

Appraisal

  • Conducted by a state-certified appraiser

  • Used by lenders to confirm loan value

  • Based on standardized valuation formulas

  • Typically costs $400-$700

✨ Why It Matters

A well-prepared CMA:

  • Prevents overpricing, which leads to stale listings

  • Avoids undervaluing, which leaves money on the table

  • Builds trust between seller and agent through transparency and data-driven advice

______________________________________________________________

Whether buying, selling, or seeking valuable insights into the market, I'm here to be your trusted guide in the dynamic world of real estate. Feel free to contact me for a confidential discussion, where we can explore your goals, address any questions, and navigate the exciting path of real estate together. Your real estate journey is unique, and I am committed to providing personalized assistance tailored to your needs. Don't hesitate to connect.

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Location: Ann Arbor, MI, USA

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