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Sellers Guide
What Is a Comparative Market Analysis? How a CMA Prices Your Home
What a comparative market analysis is, how comparable sales are chosen and adjusted, and how it differs from an appraisal or an online estimate.
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In short
• A comparative market analysis, or CMA, estimates a listing price from recent sales of similar homes nearby.
• The quality depends on choosing the right comparables and adjusting for differences.
• A CMA is not an appraisal, and it is not an automated estimate.
What a comparative market analysis is
A comparative market analysis is a pricing study prepared by a real estate professional. It compares your home with similar homes that sold recently, with homes currently for sale and with homes that were listed and did not sell. The goal is a defensible price range for your listing, supported by evidence a buyer's agent can also see.
Comps, short for comparable sales, are the core of the analysis. A strong CMA explains why each comp was chosen and what it says about your home.
Which comparables count
Good comps are recent, close by and similar in the features buyers care about. In Southern California, a few blocks can separate very different values, so location is often the first filter. Then come size, lot, age, condition, layout, parking and any view or street factor.
The three sets of data
• Closed sales show what buyers actually paid.
• Pending and active listings show your competition today.
• Expired and withdrawn listings show where prices did not work.
From comps to a price
No two homes are identical, so a CMA adjusts for differences. If a comp has an updated kitchen and yours does not, the adjustment moves the indicated value for your home down, and the reverse is also true. The size and basis of each adjustment is a judgment, and that judgment is where an experienced pricing specialist earns the fee.
The result is a range with a recommended list price and a strategy, not a single exact number. A listing price can be set to attract many showings quickly, or to test a higher price with a plan to adjust. The right approach depends on your timeline and on how many competing homes are on the market.
Where CMAs go wrong
• Using comps that are old, distant or different in type
• Ignoring condition and upgrades, in either direction
• Pricing to please the seller rather than to match the market
• Skipping pending sales, which signal where the market is moving
CMA, appraisal and online estimate
An appraisal is a formal opinion of value prepared by a licensed appraiser, usually for a lender. It follows set standards and is used to support a loan. A CMA is a pricing recommendation for a seller, prepared by a real estate agent. An automated estimate, such as those on large home-search sites, is generated by software without inspecting the home. Our guide to the Zestimate explains the limits of that approach.
Each has a purpose. For setting a listing price, a CMA built by someone who knows your street and has seen your home is the strongest starting point. Ask any agent preparing one to show you the comps and walk through the adjustments. If they cannot, treat the number with caution.
What is a comparative market analysis in real estate
A comparative market analysis, or CMA, is an agent's estimate of a home's likely sale price based on recent sales of similar nearby homes, current competing listings and homes that did not sell. Agents adjust for size, condition, location and features.
A CMA is not an appraisal. An appraisal is a formal opinion of value done for a lender. A CMA is meant to set a listing strategy and a price. Ask an agent to explain which comps they chose and why. Our free valuation is built on the same method.
Questions
CMA: common questions
Is a CMA free?
Agents commonly prepare them at no charge as part of a listing conversation. Ask what it includes and whether a home visit is part of it.
How many comps should a CMA use?
There is no fixed number. Quality matters more than quantity, and the report should explain each choice.
Will a buyer's appraisal match my CMA?
Not always. Appraisers follow lender standards and may weigh comps differently. A well-supported price reduces the risk of a gap.
How often should a CMA be updated?
Markets move. If your CMA is more than a few weeks old, or if conditions have changed, ask for a refresh.
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