Comparative Market Analysis (COMPS)
What Is Comparative Market Analysis?
A Comparative Market Analysis (CMA) is an evaluation of a property’s value based on the recent sale prices of similar properties in the same area.
Why It Matters
CMA helps buyers and sellers determine a fair and competitive price. It is a key tool in real estate transactions and pricing strategy.
How Comparative Market Analysis Works
A CMA includes:
- recently sold comparable properties (comps)
- active listings
- expired or withdrawn listings
- adjustments for size, condition, and features
- local market trends
Real estate agents typically prepare CMAs.
Example
A REALTOR prepares a CMA showing similar homes selling for $400,000–$420,000 to help price a property.
CMA vs Appraisal
- CMA is an informal estimate by an agent.
- Appraisal is a formal valuation by a licensed appraiser.
FAQs About CMA
Is a CMA accurate?
It provides a strong estimate but is not official.
Who prepares a CMA?
Typically real estate agents.
Is it free?
Often provided as part of agent services.
Related Terms
