What Is a CMA? How Agents Estimate What a Home Will Sell For
Daniel ParkNo. 63
Updated
Key takeaways
- A CMA compares a home with recent sales, pending sales and active listings nearby.
- Adjustments for size, condition and features turn those comps into a price range.
- Online estimates are a starting point, but they can’t see condition or updates.
- Sellers use a CMA to set a price; buyers use one to shape an offer.
Pricing a home is part data, part judgment. A comparative market analysis, or CMA, brings both together. Here’s how to read one.
What goes into a CMA
- Sold homes: the strongest evidence, ideally from the last three to six months.
- Pending sales: show where prices are heading right now.
- Active listings: your competition if you’re selling.
- Expired or withdrawn listings: show what the market rejected.
How adjustments work
| Difference | Adjustment example |
|---|---|
| Comp has an extra full bath | Adjust the comp’s price down |
| Comp has an older kitchen | Adjust the comp’s price up |
| Comp backs to a busy road | Adjust the comp’s price up |
| Comp has a garage your home lacks | Adjust the comp’s price down |
After adjusting, the comps point to a price range. A good CMA explains each choice clearly.
CMA vs. online estimate vs. appraisal
| Who prepares it | Best use | |
|---|---|---|
| Online estimate | An algorithm | A quick starting point |
| CMA | A local agent | Setting a list price or shaping an offer |
| Appraisal | A licensed appraiser | Lender’s value for the loan |
Daniel’s tip: Ask your agent which comp they trust most and why. The answer tells you a lot about how well they know the neighborhood.
Start with an instant estimate, then I’ll prepare a full CMA for you.
Frequently asked questions
Is a CMA free?
Yes. I provide one at no cost for owners and buyers I work with.
How is a CMA used to price a home?
Filed under Buying a Home, Selling Your Home
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