CMA (Comparative Market Analysis)
A Comparative Market Analysis (CMA) is an evaluation of similar recently sold properties (comparables) used by real estate agents to help sellers set listing prices and buyers make competitive offers.
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Exam Tip
CMA = agent-prepared pricing analysis using comparables. Appraisal = licensed appraiser for lender. Know the difference!
What is a Comparative Market Analysis (CMA)?
A CMA is a report prepared by real estate agents to estimate a property's market value by analyzing recent sales of similar properties in the same area. It's a key tool for pricing listings and making informed offers.
CMA vs. Appraisal
| Factor | CMA | Appraisal |
|---|---|---|
| Prepared By | Real estate agent | Licensed appraiser |
| Purpose | Pricing guidance | Official valuation |
| Cost | Usually free | $300-$600+ |
| Required For | Listing/offers | Mortgage approval |
| Legal Standing | Informal estimate | Legal document |
Key Components of a CMA
| Component | Description |
|---|---|
| Subject Property | Property being evaluated |
| Comparable Sales | Similar properties sold recently (3-6 months) |
| Active Listings | Current competition on market |
| Pending Sales | Properties under contract |
| Expired Listings | Properties that didn't sell |
Exam Alert
CMA is prepared by agents for pricing guidance. Appraisal is prepared by licensed appraisers for lending purposes. CMA uses comparables (comps) from recent sales to estimate market value.
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