Don't Guess the Price. Do This Instead

May 08, 2025

📝 What is a Comparative Market Analysis (CMA) and How Do I Perform One?

A Comparative Market Analysis, or CMA, is like a real estate reality check. It tells you what a property is actually worth—not what the seller dreams of, not what Zillow guessed, but what buyers have actually paid for similar properties.

📊 What’s in a CMA?

A good CMA compares:

  • Location: Same neighborhood or school district

  • Size: Within 10–20% of square footage

  • Beds & Baths: Comparable layouts

  • Condition: Apples to apples — no comparing granite countertops to Formica

  • Recent Sales: Closed within the last 3–6 months

  • Active Listings & Pending Sales: Shows current competition and market momentum

🛠 How Do You Perform One?

  1. Find 3–5 good comps: Use MLS (or a good agent) to find recently sold, similar properties.

  2. Adjust for differences: Add or subtract value based on things like condition, lot size, or upgrades.

  3. Get the range: Establish a low-mid-high price range for your subject property.

  4. Narrow it down: Factor in current market conditions (hot/cold/stable), property quirks, and buyer demand.

🤔 Pro Tip:

Even in a hot market, buyers don’t want to overpay. A solid CMA helps you justify your offer—or your listing price—with confidence (and spreadsheets, if you're into that kind of thing).