
Why the CMA (Comparative Market Analysis) is so important
A Comparative Market Analysis (CMA) is one of the most critical skills in pricing a property accurately
Accurate Pricing = Faster Sale + Higher Net
Overpricing can lead to a stale listing, while underpricing leaves money on the table.
Buyer Confidence:
When you price based on solid data, buyers trust the value — and appraisers are more likely to support it.
Negotiation Tool:
A well-prepared CMA helps justify your pricing during negotiations and counters lowball offers with facts.
Market Positioning:
It tells us whether we need to be aggressive, match market standards, or adjust based on supply and demand.
How I Perform a CMA — Step-by-Step
Define the Subject Property
Address, subdivision/neighborhood
Square footage, bed/bath count, lot size
Year built, upgrades/remodels, garage/pool
Any unique features (view, location on cul-de-sac, corner lot, backing to greenbelt, etc.)
Set the Search Criteria-In the MLS, I filter for:
Sold homes (within past 3–6 months) — most weight
Active listings — current competition
Pending sales — market movement
Expired/withdrawn — pricing mistakes to avoid
Criteria matched closely on:
Location (same neighborhood or 0.5–1 mile radius)
Size (within ~15–20% of subject’s square footage)
Property type (single family, condo, etc.)
Features (pool, garage, stories, upgrades)
Analyze the Comparables– For each comp, I look at:
Concessions or seller contributions
Condition and presentation (photos matter!)
Final sold price vs original list price
Adjust for Differences– I manually adjust for:
Square footage differences:
Premium views or locations
Determine a Value Range– Based on adjusted comps, I provide:
Low, mid, and high range estimates
Recommended list price based on current market conditions and seller motivation
Create a visual, easy-to-read report that shows:
Side-by-side comparison of properties
Strategy discussion (competitive, aggressive, or value-based pricing)
Pro Tip: I Also Check…
Absorption rate (how fast homes are selling in that market)