What is a CMA (Comparative Market Analysis)?

A Comparative Market Analysis—or CMA—is a report that helps determine your home's market value by comparing it to similar properties that have recently sold, are currently for sale, or failed to sell in your area.

Why CMAs Matter

Pricing a home correctly is crucial:

• Too high: Your home sits on the market, becomes stale, and may eventually sell for less than if priced correctly from the start
• Too low: You leave money on the table
• Just right: You attract qualified buyers and sell within a reasonable timeframe

A CMA provides data-driven insight to help find that "just right" price.

What's Included in a CMA

Comparable Sales ("Comps")

The core of any CMA is recent sales of similar properties. Ideally, these are homes that:

• Sold within the last 3-6 months
• Are within a mile or so of your home
• Have similar square footage (typically within 10-20%)
• Have similar bed/bath counts
• Share similar features and condition

Active Listings

Current competition matters. If similar homes are listed at certain prices, that affects what buyers will pay for yours.

Expired/Withdrawn Listings

Properties that didn't sell provide valuable information about pricing ceilings in your area.

Adjustments

No two homes are identical. A good CMA adjusts for differences:

• Your home has a pool, comp doesn't: Add value
• Comp has a 3-car garage, yours is 2-car: Subtract value
• Your home was updated recently, comp wasn't: Add value

CMA vs. Appraisal

These are different things:

CMA	Appraisal
Prepared by real estate agents	Prepared by licensed appraisers
Used to set listing price	Used by lenders to verify value
Based on MLS data	Based on MLS data plus inspection
No formal certification required	State-licensed and regulated
Usually free	Costs several hundred dollars

A CMA helps you set a price. An appraisal verifies value for the lender during the sale process.

Limitations of CMAs

CMAs are estimates, not guarantees. They can be affected by:

• Limited comparable sales data
• Rapidly changing market conditions
• Unique features that are hard to value
• Differences in condition that aren't captured in data

Getting an Accurate CMA

The quality of a CMA depends on:

1. Good comp selection: Choosing truly comparable properties
2. Accurate adjustments: Properly accounting for differences
3. Local knowledge: Understanding neighborhood-level factors
4. Recent data: Market conditions change

Using the CMA

A CMA gives you information to make a decision—it doesn't make the decision for you. Consider the data, but also factor in your timeline, motivation, and tolerance for how long you're willing to wait.

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Want to see what your home might be worth? Contact Greg Franklin or call (559) 816-7780 for a detailed CMA.