Comparative Market Analysis
How a CMA is built
An agent selects a set of comparable properties -- similar size, condition, and location, sold within a recent window -- and adjusts for differences like square footage, upgrades, or lot size to arrive at an estimated value range for the subject property.
CMA vs. formal appraisal
A CMA is an agent's professional opinion, used for pricing strategy or offer evaluation, while a formal appraisal is a licensed, independent valuation required by lenders as part of financing. The two often align but aren't guaranteed to match, which is part of why the appraisal contingency exists.
How comps are typically selected
An agent building a CMA generally pulls 3 to 6 comparable sales within about half a mile, sold in the last 90 days, adjusting for differences in square footage, bedroom count, and condition -- fewer or older comps produce a less reliable estimate, particularly in fast-moving markets.
- Ask which comparable sales were used and how recently they closed
- Request an explanation for adjustments made on size, condition, or lot differences
- Get a second opinion if the CMA looks out of line with what you're seeing
- Use the CMA's range, not a single number, to guide your offer strategy