What’s My House Worth?

What is a (CMA) comparative market analysis?

A Comparative Market Analysis (CMA) is an evaluation of similar, recently sold homes (called comparables or “comps”) that are near a home or homes that you want to buy or sell. Buyers, sellers, or real estate agents perform a CMA report to establish and find a fair price range for the subject property. This price range is used as a guide for establishing an offer price or a listing price.

Basically, performing a CMA involves finding the homes that are similar to the home under consideration, and creating an in-depth comparison of its size, age, location, and features of the home. It all comes down to one question: compared to other, comparable homes in this area, how much is this home worth? Answering that question involves looking at a fair amount of data on other homes in the current market.

The process for doing a comparative market analysis requires us to:

  • Define criteria for selecting comparables in close geographic proximity

  • Determine a list of quality comparables

  • Evaluate the comparables within close range to the home

  • Adjust comparable values for differences in size, condition, location, amenities, etc

  • Estimate the ideal value of your target home based off the findings