What Is a Comparative Market Analysis? CMA Explained

How a CMA Works

A CMA compares the subject property to 3-6 recently sold homes that are similar in size, location, age, and condition. The agent adjusts for differences: a home with an updated kitchen may be valued higher, while a home with an older roof may be valued lower. The result is a price range that reflects what buyers are actually willing to pay.

What Goes Into a CMA

Agents look at recent sales (usually within the last 3-6 months), active listings (current competition), and expired or withdrawn listings (homes that did not sell and why). Key factors include square footage, lot size, number of bedrooms and bathrooms, age, condition, upgrades, location, and school district.

How Buyers Use a CMA

Buyers use a CMA to determine a fair offer price. If the asking price is above the CMA range, you know there is room to negotiate. If it is below, the home may be priced to sell quickly. A CMA also helps you decide when to walk away from an overpriced property.

How Sellers Use a CMA

Sellers use a CMA to set a realistic listing price. An overpriced home sits on the market, loses its initial marketing momentum, and often sells for less than it would have if priced correctly from the start. A CMA gives sellers the data they need to price competitively.

CMA vs Appraisal vs Zestimate

A CMA is an agent's estimate based on market data. An appraisal is a formal valuation by a licensed appraiser for the lender. A Zestimate is an automated algorithm. The CMA is the most useful for pricing decisions, but an appraisal is what the lender requires for loan approval.