What is a CMA in Real Estate?

Real estate agents often create a comparative market analysis (a.k.a CMA) to estimate the value of your home. This information is beneficial to sellers so they can price their home accurately and it allows buyers to feel comfortable with how much they’re paying for their home.

Real estate agents create a CMA by looking at recently sold properties that are similar to your house (or, if you’re a home buyer, the one you want to make an offer on). Similarity is very important since it gets you the closest comparison to ensure you are making an informative financial decision.

Things We Look For:

• Recently Sold: It’s important to make sure your CMA includes recent sales. The market can change very quickly, so agents try to look at sales within the last six months.
• Location: Comparable homes should be in the same neighborhood or nearby. An agent should evaluate the area and understand which homes are more similar to the home they are trying to price.
• Similar Square Footage: You have a >2,000 sq. ft. house and your neighbor has a <1300 sq. ft. house…. not a great comparable. It’s important to keep the square footage, number of bedrooms and bathrooms as close as possible.

Actively listed homes and pending homes are also great to take into consideration. Keep in mind that anyone can ask any price for their home, but what’s most important is what it actually sells for.

The more comparable homes we find, the better. This means during slower months it can be more difficult to price your home, but if you work with a knowledgeable agent they will be able to help you accurately price your home.