Comparative Market Analysis (CMA)

In depth

A CMA looks at three to six recently sold comparables, plus active and pending listings, adjusting for differences in size, condition, location, and features. Real estate agents prepare CMAs for clients, but FSBO sellers can prepare their own using public records and Zillow data. Misconception: a CMA is not an appraisal; it is a marketing opinion of value, not a regulated valuation. Practically, FSBO sellers should run a CMA before pricing. Overpricing leads to long days on market and price reductions; underpricing leaves money on the table. CMA basics include selecting truly comparable properties (same neighborhood, similar size and age), looking at sold rather than asking prices, and adjusting for differences. Many FSBO sellers also pay $300 to $500 for a formal appraisal to validate pricing.