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
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