How to Run a Comparative Market Analysis (CMA)
Learn the exact process agents use to estimate a home's value: selecting comps, adjusting for differences, and arriving at a defensible price range.
A comparative market analysis (CMA) is how professionals turn recent sales into a credible value estimate. You can follow the same logic to price a listing or sanity-check an offer.
- 1
Gather recent comparable sales
Find homes that recently sold near the subject property, similar in size, age, style, and condition. Prioritize the most recent and closest sales.
- 2
Note the key differences
Record where each comp differs — an extra bedroom, a renovated kitchen, a larger lot, better or worse condition.
- 3
Adjust for those differences
Add or subtract value from each comp to account for its differences from the subject property, so you're comparing like with like.
- 4
Factor in current conditions
Layer in today's inventory, days-on-market, and demand, since comps reflect what already happened, not what's happening now.
- 5
Arrive at a value range
Combine your adjusted comps into a defensible range, then position your price within it based on goals and competition.
Frequently asked
How many comps do I need?
Three to six strong, recent, nearby comps usually give a reliable picture. Quality and recency matter more than quantity.
Is a CMA the same as an appraisal?
No. A CMA is an estimate used for pricing and offers; a formal appraisal is performed by a licensed appraiser, often for the lender. Always confirm with an appraiser before a transaction.
Keep reading
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