Comparative Market Analysis (CMA)
Standard Definition
An estimate of a property's value prepared by a real estate agent based on recent sales of similar nearby properties to assist in pricing.
Detailed Examination Analysis
A Comparative Market Analysis (CMA) is a tool used by real estate agents to help sellers determine a listing price or to help buyers determine an offer price. Unlike a formal appraisal conducted by a licensed appraiser, a CMA is an informal valuation. The agent selects similar properties (comps) that are currently active, pending, or recently sold in the immediate neighborhood, adjusting for differences in size, condition, and features.
Real-World Examination Scenario
"An agent prepares a CMA for a seller who wants to list their home. The agent finds three similar 3-bedroom homes nearby that sold for $290,000, $295,000, and $305,000. Based on these comps, the agent advises the seller to list their home at $299,000."
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