How Is a Comparative Market Analysis Different From an Appraisal?
A CMA is prepared by a real estate agent and is not an official valuation. An appraisal is conducted by a licensed appraiser following regulatory standards and is used by lenders for loan decisions. CMAs are free tools used in listing and offer strategy; appraisals cost $300 to $700 and carry legal weight. For pricing and offer decisions, a CMA is a practical starting point.
What Data Goes Into a CMA?
Agents pull recent sold listings — ideally from the past three to six months — within a half-mile of the subject property. They select homes with similar square footage, bedroom and bath count, lot size, age, and condition. Each comp is adjusted for differences: a home with an extra bathroom or updated kitchen warrants a higher price per square foot than one without. Active listings and expired listings also provide market context.
How Accurate Is a Comparative Market Analysis?
CMA accuracy depends on the quality of comparable sales available and the skill of the agent. In high-turnover neighborhoods with many similar homes, CMAs can be quite precise. In rural areas, unique properties, or slow markets with few recent sales, accuracy diminishes. A CMA is a range estimate, not an exact number — list price is ultimately a pricing strategy, not a calculation.
Frequently asked questions
Can I do my own comparative market analysis?
Yes. Tools like Zillow, Redfin, and public MLS data let you see recent sales. However, professional CMAs account for nuanced adjustments between properties that online tools miss. Using both gives you a better picture of true market value.
How often should a CMA be updated?
Markets move. If a listing hasn't sold within 30 to 45 days, a fresh CMA is warranted to see if conditions have changed. Stale pricing is one of the most common reasons homes sit on the market longer than necessary.