Quick Guide: How to Prepare a CMA

A comparative market analysis, or CMA, estimates a property’s value based on the selling price of similar recently sold properties. This method provides a detailed comparison of similar properties in the same area, considering the property’s location, size, features, and condition.

Step 1: COLLECT DATA

Measure square footage, note building type and room measurements, the number of bedrooms and bathrooms, age and style of the home, assess any upgrades, and identify any necessary property repairs.

Step 2: DETERMINE THE MARKET

Research the current market. Determine whether houses are selling quickly or slowly. Determine the average length of time of active listings and the details of expired listings.

Step 3: COLLECT DATA FOR COMPARABLE PROPERTIES

Use the MLS or similar database to identify three to four recently sold properties with similar features.

Step 4: ADJUST FOR DIFFERENCES

Add or subtract values from comparables as necessary.

Step 5: SUGGESTED LISTING RANGE OR AVERAGED SELLING PRICE

Express as a range of the “adjusted sales prices” of the comps or as a single estimated probable selling price based on the weighted average of the adjusted comps.