How to Do a CMA in Real Estate (2026 Guide)

A comparative market analysis (CMA) is a report that estimates a property’s market value by comparing it to recently sold homes with similar characteristics in the same area. It is the core deliverable of every listing presentation. Sellers decide who to hire based on two things: how much they trust you and how much they believe your price is right. The CMA is how you prove the second one.

A good CMA is not just numbers on a page. It tells a story: here is what comparable homes sold for, here is how the subject property differs, and here is where the data points to a realistic listing price. A bad CMA is a stack of MLS printouts with no analysis. The seller could pull those themselves. Your value is the analysis.

CMA vs Appraisal vs AVM

Before diving into how to build a CMA, understand what it is and is not.

	CMA	Appraisal	AVM
Who creates it	Real estate agent	Licensed appraiser	Algorithm (Zillow, Redfin, HouseCanary)
Purpose	Set listing price, win listing presentation	Determine value for lender underwriting	Instant estimated value
Cost	Free (agent provides it)	$400-800 (paid by buyer/lender)	Free
Legal standing	None — opinion of value	Legal document required for most mortgages	None
Accuracy	Depends on agent skill and data quality	Highest (physical inspection + data)	Varies (median error 2-7% nationally)
Turnaround	1-24 hours	1-3 weeks	Instant
Adjustments	Agent applies based on experience	Appraiser follows USPAP standards	Algorithm applies statistical adjustments

For a deeper look at automated valuations and when to trust them, read our AVM guide for agents.

Step 1: Gather Subject Property Details

Before pulling comps, document everything about the subject property:

• Address and subdivision/neighborhood name
• Bedrooms, bathrooms (full and half), square footage
• Lot size and lot type (corner, cul-de-sac, backing to road/commercial)
• Year built and any major renovation dates
• Garage (attached/detached, 1-car/2-car/3-car)
• Basement (finished, unfinished, walkout, none)
• Pool, outbuildings, special features
• Condition (updated, original, needs work)
• HOA fees, tax assessment, and any special assessments

If possible, do a walkthrough or video call with the seller before building the CMA. Photos can hide deferred maintenance, and sellers often forget to mention updates (new HVAC, roof, windows) that affect value.

Step 2: Pull Comparable Sales

Comps are recently sold properties similar to the subject. They are the foundation of your CMA.

MLS Search Criteria

Start with tight criteria and widen if needed:

Filter	Ideal Range	Acceptable Range
Sale date	Last 3 months	Last 6 months (12 in slow markets)
Distance	Same subdivision/neighborhood	Within 1 mile (0.5 in dense urban)
Square footage	Within 10% of subject	Within 20%
Bedrooms	Same count	± 1 bedroom
Bathrooms	Same count	± 1 bathroom
Year built	Within 5 years	Within 10 years
Style	Same (ranch, two-story, split)	Similar style
Condition	Similar	Similar tier (updated vs. original)

You want 3-6 solid comps. If your tight criteria return fewer than 3, widen one filter at a time — start with distance, then date, then square footage.

What Makes a Good Comp

The best comp is a home that a buyer would have also considered buying instead of the subject property. Ask yourself: “Would a buyer shopping for my listing have also looked at this comp?” If yes, it is relevant.

Avoid these as comps:

• Foreclosures and short sales (distressed pricing skews low)
• Estate sales (often below market, deferred maintenance)
• Builder-to-buyer new construction (includes builder incentives and margin)
• Flips by investors (may have inflated prices)
• Properties with significantly different lot characteristics (waterfront vs. interior, busy road vs. quiet street)

Active and Pending Listings as Supporting Data

Your CMA should primarily use sold comps, but include 2-3 active and pending listings as supporting context:

• Active listings show what your competition is priced at right now. The subject property will compete directly with these.
• Pending listings show what the market is absorbing at which price points. Pending prices are not public in most MLSs, but the original list price and days on market indicate market acceptance.

Step 3: Make Adjustments

Raw comp prices are never a direct match to the subject property. Adjustments account for differences.

How Adjustments Work

Always adjust the comp to match the subject, not the other way around. If the comp has a feature the subject lacks, subtract value. If the subject has a feature the comp lacks, add value.

Difference	Typical Adjustment	Notes
Extra bedroom	+$5,000-20,000	Depends on market and bedroom count (2→3 matters more than 4→5)
Extra bathroom	+$5,000-15,000	Full bath worth more than half bath
Square footage	$50-200/sq ft	Use price-per-sq-ft from comps to calibrate
Garage (2-car vs 1-car)	+$10,000-25,000	Market-dependent
Finished basement	+$10,000-30,000	Usually valued at 50-70% of above-grade sq ft
Pool	+$5,000-15,000	Varies widely — adds value in warm climates, can be negative in cold
Updated kitchen	+$10,000-40,000	Recent renovation vs. original. Cosmetic vs. full remodel matters.
Lot size difference	$1-20/sq ft	Depends heavily on area — minimal in subdivisions, significant in rural
Age difference	±$500-2,000/year	Only for significant gaps (10+ years)
Condition	±$10,000-50,000	The hardest adjustment — be conservative

Adjustment Example

Subject property: 3 bed, 2 bath, 1,800 sq ft, 2-car garage, no pool, updated kitchen. Sold comp: $425,000 — 4 bed, 2 bath, 2,000 sq ft, 2-car garage, pool, original kitchen.

Adjustment	Amount	Reason
Extra bedroom (comp has 4, subject has 3)	-$10,000	Subtract: comp has more bedrooms
Square footage (comp has 200 more sq ft)	-$20,000	Subtract at $100/sq ft
Pool (comp has, subject does not)	-$10,000	Subtract: comp has pool
Kitchen (subject updated, comp original)	+$25,000	Add: subject has better kitchen
Net adjustment	-$15,000
Adjusted comp value	$410,000

Apply this process to each comp. Your recommended list price should fall within the range of adjusted comp values, typically near the average.

Step 4: Determine the Price Range

After adjusting your comps, you will have 3-6 adjusted values. Do not just average them. Consider:

1. The adjusted price range. This is your recommended listing price range (e.g., $395,000-$415,000).
2. Which comps are most similar. Weight the most comparable sales more heavily.
3. Market conditions. In a seller’s market (low inventory, multiple offers), price toward the top of range. In a buyer’s market, price at or below the middle.
4. Days on market for active listings. If similar actives have been sitting 60+ days, they are overpriced. Your listing should come in below them.
5. Absorption rate. How many months of inventory exist in this price range? Under 3 months = seller’s market. Over 6 months = buyer’s market.

Market Condition	Months of Inventory	Pricing Strategy
Strong seller’s market	Under 2 months	Top of CMA range or slightly above
Seller’s market	2-3 months	Mid to top of CMA range
Balanced market	4-5 months	Middle of CMA range
Buyer’s market	6+ months	Mid to bottom of CMA range
Distressed market	8+ months	Bottom of CMA range or below

Step 5: Build the CMA Presentation

A CMA is only as good as how you present it. The seller needs to understand your logic, not just see your number.

What to Include

1. Cover page with the subject property address, your name, brokerage, and date
2. Subject property summary — photos, specs, features
3. Market overview — 1-2 paragraphs on current local market conditions (inventory, median price, trend)
4. Comparable sales map — visual showing where comps are relative to the subject
5. Individual comp pages — photo, specs, sale price, sale date, key differences from subject
6. Adjustment grid — the table showing how you adjusted each comp
7. Recommended price range — your conclusion with reasoning
8. Net sheet — estimated seller proceeds at the recommended price (after commissions, closing costs, mortgage payoff)
9. Marketing plan summary — what you will do to sell the home (briefly — this is a separate conversation)

CMA Presentation Tools

Cloud CMA is the most popular dedicated CMA tool because it pulls data directly from your MLS and produces polished presentations in minutes. If you are doing more than a few CMAs per month, the $33-50 subscription pays for itself in time savings. For a detailed comparison, see our Cloud CMA vs Homesage AI vs HouseCanary review.

Common CMA Mistakes

Mistake	Why It Hurts	Fix
Using only the highest comps	Seller loves the high price but the home sits for 90 days, then you take a price reduction	Include the full range and explain why the middle is most realistic
Ignoring condition differences	A renovated comp selling for $450K does not mean an original-condition subject is worth $450K	Always adjust for condition — it is the biggest variable
Too many comps	15 comps overwhelm the seller and dilute your analysis	Stick to 3-6 strong comps. Quality over quantity.
No market context	Numbers without context — “Is this market going up or down?”	Include months of inventory, median price trend, and days on market trend
Skipping the net sheet	Sellers care about what they walk away with, not the gross sale price	Always include estimated net proceeds
Using expired comps	Sales from 12+ months ago in a changing market are misleading	Prioritize the last 3 months. Use older sales only to show trends.

How AI Is Changing CMAs

AI tools are making parts of the CMA process faster, though they are not replacing agent judgment yet.

What AI does well:

• Pulling and organizing comp data automatically
• Generating initial value estimates based on property features and market data
• Creating professional-looking CMA presentations
• Tracking market trends and alerting you to significant changes

What AI does not do well (yet):

• Evaluating property condition from photos reliably
• Understanding hyperlocal factors (the lot backs to a highway, the neighbor runs a business)
• Adjusting for intangibles (curb appeal, flow, natural light)
• Presenting findings to a seller with credibility and empathy

The best approach in 2026: use AI tools to gather data and build the initial report, then apply your local expertise to adjust, refine, and present. Read our AVM guide for more on how automated valuations compare to agent-built CMAs.

Related

• Automated Valuation Model Guide for Agents — how AVMs work and when to trust them
• How Accurate Are Zillow Zestimates? — what agents need to know about Zestimate accuracy
• Homesage AI vs HouseCanary vs Cloud CMA — CMA and property analysis tool comparison
• AVM in Real Estate: How Automated Valuations Affect Your Business — business impact of AVMs for agents