What Is a Comparative Market Analysis (CMA) & Why It Matters

Pricing a home correctly is one of the most critical steps in a real estate transaction. A Comparative Market Analysis (CMA) is the tool agents use to determine fair market value based on real data. Here’s what goes into a CMA, why it matters, and how it benefits both buyers and sellers. For a free custom CMA, visit our Contact Page.

What Is a CMA?

A CMA is a report comparing your property to similar recently sold homes in your neighborhood. Adjustments are made for factors like:

• Square footage

• Condition

• Upgrades and features

• Lot size

• Location (school district, street, neighborhood amenities)

The goal is to produce a realistic price range that aligns with current market demand.

What Goes Into a CMA

• Sold listings (usually within last 3–6 months)

• Active listings (your competition)

• Pending listings (what’s under contract now)

• Market trends (average days on market, price per square foot shifts)

• Adjustments for unique features (pool, finished basement, renovations)

Why It Matters

• For sellers: Helps avoid overpricing (which leads to stale listings) or underpricing (which leaves money on the table).

• For buyers: Confirms whether a home is fairly priced before making an offer.

• For negotiations: Provides hard data to justify counteroffers or adjustments after inspection.

With market conditions changing, a CMA keeps both buyers and sellers grounded in facts, not emotions.

CMA vs Appraisal

• CMA = prepared by a real estate agent, based on market comps, free or low-cost.

• Appraisal = formal valuation by a licensed appraiser, often required by lenders.

Both aim to determine value, but CMAs are more about helping you set or evaluate listing price, while appraisals are for financing approval.

A CMA is one of the most valuable tools for setting realistic expectations and making smart decisions. If you’d like us to prepare a free CMA for your property, simply reach out via our Contact Page.