CMA
A CMA — comparative market analysis — is the report your agent puts together to figure out what your home is actually worth based on what similar homes nearby have sold for recently. It’s the most important document in the pricing process, and a bad one can cost you tens of thousands of dollars.
What Goes Into a CMA
The agent pulls recent sales data from the MLS, focusing on “comps” — comparable properties that are similar to yours in size, age, condition, and location. They typically look at homes that sold within the last 3-6 months and within a 0.5 to 1 mile radius of your property.
Good comps share key characteristics: similar square footage (within 10-15%), same general style (ranch vs. two-story), comparable lot size, similar bedroom/bathroom count, and equivalent updates. A renovated home with quartz countertops and new floors shouldn’t be compared to a dated home with laminate and carpet — adjustments are needed.
The agent then makes dollar adjustments for differences. Your home has a pool but the comp doesn’t? Add $15,000-$25,000. The comp has a three-car garage versus your two-car? Subtract $10,000-$15,000. These adjustments require local knowledge and experience — it’s more art than science.
CMA vs. Appraisal
A CMA is an agent’s professional opinion. An appraisal is a licensed appraiser’s formal valuation. Both use comparable sales, but an appraisal follows strict USPAP guidelines, carries legal weight, and costs $300-$500. A CMA is free (agents provide them to win listings) and is considered a marketing tool, not a legal document.
That said, a well-done CMA and a professional appraisal usually land within 2-3% of each other. If they don’t, someone made a mistake.
Red Flags in a CMA
Watch out for agents who cherry-pick high comps to inflate your expected price and win your listing. This is called “buying the listing” — they tell you what you want to hear, get you to sign, then push for price reductions later when the home doesn’t sell.
A trustworthy CMA includes comps you might not love. It shows active listings (your competition), pending sales, expired listings (homes that failed to sell), and sold properties. If your agent only shows the highest sales and ignores the rest, get a second opinion.
Also be skeptical of CMAs that use comps from too far away, from different school districts, or from more than six months ago. Markets move fast, and stale data leads to stale pricing.
How to Use a CMA
The CMA gives you a price range, not a single number. Your home might be worth $385,000-$410,000 based on comps. Where you price within that range depends on your timeline, motivation, market conditions, and strategy.
If you need to sell fast, price at the low end to generate multiple offers. If you can wait and want maximum value, start at the mid-to-high end and adjust after two weeks if needed. Pricing above the range is almost always a mistake — it leads to high days on market, which leads to price reductions, which leads to selling for less than the range’s low end.
Getting Your Own CMA
Ask two or three agents for CMAs before choosing one to list with. Compare their analyses, reasoning, and suggested price ranges. The best agent isn’t the one who gives you the highest number — it’s the one whose analysis is the most thorough and realistic.
Once you’ve settled on a price, run it through the net proceeds calculator to see your estimated take-home. The selling guide walks through the full listing process from CMA to closing, and the glossary covers related terms like listing price and days on market.