Comparative Market Analysis.
In plain English
A comparative market analysis, or CMA, is a report a real estate agent prepares to estimate what a home is worth right now. The agent finds recently sold homes nearby that are similar in size, age, condition, and location (called comparables or comps) and adjusts for differences, like an extra bathroom or a smaller lot. The result is a suggested price range for listing or making an offer. A CMA is the agent's informed opinion, not a formal appraisal and not a guarantee of the sale price.
01Why it matters
A CMA helps you avoid overpaying as a buyer or underpricing as a seller, which on a six-figure purchase can be the difference of thousands of dollars.
02The math, step by step
You are selling a 3-bedroom house. Your agent pulls three homes within a mile that sold in the last few months: one at $312,000, one at $298,000, and one at $305,000. Yours has a renovated kitchen, so the agent adjusts upward and suggests a listing range around $310,000 to $320,000. You use that range to set your asking price.
03What this is NOT
A CMA is an agent's marketing estimate to help set price. An appraisal is a licensed appraiser's formal valuation, usually ordered by the lender, and it is what the loan amount is checked against.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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