Comparative Market Analysis

· 2 min read
A comparative market analysis (CMA) is a report your real estate agent puts together showing what similar homes in your area recently sold for —…

A comparative market analysis (CMA) is a report your real estate agent puts together showing what similar homes in your area recently sold for — and it’s the main tool used to figure out what a home is actually worth before you make an offer.

Think of it as the agent version of an appraisal, but free and faster. It’s not an official valuation, but a good CMA from an experienced agent can land within 3%–5% of the eventual appraised value.

How a CMA Works

Your agent pulls 3–6 “comps” — comparable properties that sold recently (ideally within 90 days), are nearby (within 0.5–1 mile), and are similar in size, condition, and features. They adjust for differences. A comp with a finished basement that yours lacks? Subtract $15,000–$25,000. Your home has a pool and the comp doesn’t? Add $10,000–$20,000, depending on the market.

Good agents also look at active listings (your competition), pending sales (deals in progress but not yet closed), and expired listings (homes that didn’t sell — often because they were overpriced).

What’s in a CMA Report

  • Comparable sold properties with sale prices, dates, square footage, lot size, bedrooms/baths, and condition notes
  • Adjustments for differences between comps and the subject property
  • Price per square foot for the neighborhood (a quick sanity check)
  • Days on market averages (tells you how fast homes are moving)
  • Active listings showing current competition
  • Recommended price range based on the analysis

CMA vs. Appraisal

A CMA is an informal opinion from a real estate agent. It’s free and takes hours, not weeks. An appraisal is a formal valuation by a licensed appraiser, ordered by the lender, costing $400–$700. The appraisal is what matters for your loan — but the CMA is what helps you decide what to offer.

Smart buyers use the CMA to make their offer and the appraisal to validate it. If there’s a big gap between the two, something’s off — either the CMA used bad comps or the appraiser missed something.

Frequently Asked Questions

Can I do my own CMA?

Sort of. Zillow, Redfin, and Realtor.com show recent sales data. But you won’t have access to the full MLS data agents use, and making accurate adjustments requires experience. A home that sold for $380,000 three doors down might have a brand-new kitchen that justifies $30,000 more than your target home with 1990s cabinets. Agents spot these differences instantly. Use our affordability calculator to set your budget first, then let your buyer’s agent run the CMA to make sure you’re offering the right amount.