What is a CMA and who provides one?

A Comparative Market Analysis (CMA) is a report prepared by a real estate agent that estimates a property's market value based on recent sales of similar homes in the same area. Listing agents prepare CMAs to recommend a list price. Buyer's agents prepare them before making an offer. A CMA is an agent-prepared analysis, not a formal appraisal — appraisals are conducted by licensed appraisers and are required by lenders.

How accurate is a CMA?

A well-prepared CMA from an experienced local agent is typically accurate within 2%–5% of actual market value. The accuracy depends heavily on how well the agent adjusts for differences between your home and the comparable sales — square footage, condition, features, location within the neighborhood, and timing of the sale. A lazy CMA that doesn't make specific adjustments can be off by 10% or more.

Can I get a CMA without hiring an agent?

You can get an informal estimate from sites like Zillow (Zestimate) or Redfin, but automated valuations have significant limitations — they can't account for your home's specific condition, recent renovations, or hyperlocal micro-market dynamics. A free CMA from a real estate agent is more accurate and comes with a human explanation of the reasoning.

How to Read a Comparative Market Analysis (CMA)

May 23, 2026

What a CMA Contains

A Comparative Market Analysis is a data-driven report that compares your property to similar homes that have recently sold in your area. When you receive one from an agent — whether you're selling and need a list price or buying and want to know if an offer is reasonable — here's how to read it intelligently.

The Three Categories of Comparables

Every CMA includes three types of comparable properties, or "comps":

Recently sold: The most important category. These are closed transactions — homes that actually sold at the listed prices. This is the foundation of any CMA.
Active listings: Currently on the market. These represent your competition (if you're selling) or comparable options (if you're buying). Use them for context, not pricing — they haven't sold yet.
Expired or withdrawn listings: Homes that went on the market but didn't sell. These tell you where prices are too high relative to buyer demand.

Reading the Comparable Sales

For each comparable sale, look at:

Sale price vs. list price: Was the home sold above, at, or below list price? A comp that sold at 101% of list in 14 days tells you the market is competitive. One that sold at 95% of list after 75 days tells you the opposite.
Days on market: Shorter DOM = stronger demand. Longer DOM = pricing or condition issues, or a slower market.
Price per square foot: Calculate this for each comp and compare to your subject property. Significant deviations need explanation.
Sale date: Comps older than 6 months are less reliable in fast-moving markets. Comps from the last 90 days carry the most weight.

Understanding Adjustments

This is where most people misread a CMA. Raw comp prices don't mean much without adjustments for differences between the comp and your property. Common adjustments include:

Square footage: If your home is 200 square feet larger than a comp, an agent adds value accordingly
Bedroom/bathroom count: Additional bathrooms typically add $5,000–$15,000 in value depending on market
Garage: An attached 2-car garage vs. no garage can be a $15,000–$30,000 difference
Lot size: Especially important for single-family homes in land-constrained markets
Condition: A renovated kitchen and bathrooms vs. original 1980s finishes can justify $20,000–$60,000 in price difference
Location within neighborhood: Backing to a busy road vs. a quiet street; proximity to parks, schools, or commercial areas

A CMA without adjustments is just a list of nearby sales. The quality of the adjustments is what makes a CMA useful.

How to Use a CMA as a Buyer

Before making an offer, ask your agent for a buyer's CMA on the specific property. Compare the asking price to the adjusted CMA value. If the home is listed 8% above what comps support, you know your offer strategy going in. If it's priced at or below CMA value, you know competition is likely.

How to Use a CMA as a Seller

When your listing agent presents a CMA, push them to show you the adjustments they made. A CMA that simply says "these 5 homes sold for $X–$Y, so you should list for $Z" is incomplete. Ask: "How did you adjust for our extra bathroom? What did you add for the renovated kitchen? What did you subtract because we don't have a pool like comp #3?"

The agent's ability to answer these questions specifically is a proxy for their market knowledge and pricing skill. Find top-performing listing agents in your market on The Realtor Rankings.

Frequently Asked Questions

What is a CMA and who provides one?: A Comparative Market Analysis (CMA) is a report prepared by a real estate agent that estimates a property's market value based on recent sales of similar homes in the same area. Listing agents prepare CMAs to recommend a list price. Buyer's agents prepare them before making an offer. A CMA is an agent-prepared analysis, not a formal appraisal — appraisals are conducted by licensed appraisers and are required by lenders.
How accurate is a CMA?: A well-prepared CMA from an experienced local agent is typically accurate within 2%–5% of actual market value. The accuracy depends heavily on how well the agent adjusts for differences between your home and the comparable sales — square footage, condition, features, location within the neighborhood, and timing of the sale. A lazy CMA that doesn't make specific adjustments can be off by 10% or more.
Can I get a CMA without hiring an agent?: You can get an informal estimate from sites like Zillow (Zestimate) or Redfin, but automated valuations have significant limitations — they can't account for your home's specific condition, recent renovations, or hyperlocal micro-market dynamics. A free CMA from a real estate agent is more accurate and comes with a human explanation of the reasoning.