What is a CMA or Comparable Market Analysis?

Simply put a Comparable Market Analysis (or CMA for short) is both an estimate on how much your home is worth in the current real estate market and a report card for your neighborhood. There are a number of reasons why someone may want a CMA, but most real estate agents complete Comparable Market Analyses on a homes they're preparing to list on the market.

Not only does it give them a rough idea as to how to market a home, but it also allows professionals to gauge if activity in a market is stagnating, increasing or declining and by how much.

Typically homes are graded by a direct and recent competition. For example, a good REALTOR would not use a recently sold Ranch in Merrimack with 1,150 square feet to price a Colonial in Bedford with 4,500 square feet and a four car garage.

Two main types of properties are considered when producing a CMA. Recently sold properties are typically considered if they've been purchased within a reasonable time frame (180 days or so) and currently active properties that would be direct competition. The difference between the two allows a professional to determine whether especially aggressive pricing may be required to sell a home within a reasonable time frame.

A Comparable Market Analysis differs from an appraisal in the fact that appraisals contain a significant amount of data specific to your home. It's more of a score card as to the condition of your property. Appraisals are performed by professionals who specialize in that field and are often not licensed REALTORs. Appraisals can often cost several hundred dollars, depending on the size of your home and a number of other determining factors.