Comparative Market Analysis (CMA)
Analysis of recent sales of similar properties to determine market value; prepared by real estate agents.
Key Takeaways
- Begin with the fundamental ideas and step-by-step processes
- Always verify the most current rules with official authorities
- Talk to qualified experts for personalized guidance
Overview
A Comparative Market Analysis (CMA) is a report prepared by a real estate agent to estimate a property's market value. It compares the subject property with recently sold homes (comps) that are similar in size, location, condition, and features. The CMA helps sellers set an appropriate listing price and helps buyers determine if a property is fairly priced.
Components of a CMA
- Recently sold comparable properties ("comps")
- Currently listed properties (active listings)
- Properties that expired without selling
- Adjustments for differences in features
How It Works
- Agent selects 3-5 similar properties in the same area
- Compares key features: square footage, bedrooms, bathrooms
- Adjusts prices based on differences (e.g., extra bathroom)
- Determines a price range for the subject property
Related Glossary Terms
Frequently Asked Questions
This guide breaks down the essential ideas and real-world uses of this subject in real estate and finance.
Each circumstance is different, so this piece offers general guidance. For personalized advice, consult a qualified professional.
Turn to official sources such as the IRS, CRA, HUD, and CFPB for the most accurate and up-to-date information.
This content is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for advice specific to your situation.