What is a CMA in real estate?

A CMA in real estate is a tool real estate agents use to estimate a home’s value based on comparable homes in the area that were recently sold. Many agents present a CMA when they audition for a listing to demonstrate to sellers that they know the local market inside and out.

What constitutes a comp?

An accurate comp (comparable) is a property that’s similar to your home with respect to its age, location, number of bedrooms and bathrooms, square footage, acreage, upgrades, and amenities. Real estate agents use comps to create a comparative market analysis (CMA) so you can decide how much to list your home for.

What does a CMA include?

A typical CMA includes anywhere from three to six comparable homes. The report includes a photo of each home, plus a list of key data, such as a property’s original list price, days on market, final sale price (if the property has been sold), its number of bedrooms and bathrooms, square footage, year built, and acreage. CMAs also include any adjustments made to the value of each property. For example, if the subject home has one more bedroom than a comp, and each bedroom is equal to $2,500 in value in the local market, the comparable home is $2,500 less in value.

Mariia Kislitsyna

Writer

NYC-based and with a master’s degree in strategic management, Mariia has years of experience writing about real estate. You can find her articles in Investor's Business Daily, Forbes, and Yahoo Finance.

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