Key takeaways:<\/strong><\/p>\n To follow along with the steps involved with completing a CMA, you can use our free CMA worksheet template and fill in each section as you move through this guide.<\/p>\n Download The Close\u2019s Free CMA Worksheet Template<\/a><\/p>\n Completing a CMA involves thorough data analytics<\/a> to get a good understanding of the property you\u2019re evaluating. This includes gathering data like when the property was built, its gross living area, and how many bedrooms and bathrooms it has. If you\u2019re a listing agent, this is a crucial step because being knowledgeable about the home\u2019s characteristics is a key in having an effective marketing plan<\/a> for the property.<\/p>\n I recommend using public records in researching the property, as these likely have the most accurate and updated information. Many MLSs have the ability to retrieve this data from public records for you, like Corelogic\u2019s Realist or Propertyradar. Once you\u2019ve gathered this data, I also strongly recommend an in-person visit to the property to see if there are any notable discrepancies.<\/p>\n<\/div>\n<\/div>\n Below is a list of items you should consider when preparing your CMA:<\/p>\n Consider where the property is located in relation to things like shopping and entertainment centers, grocery stores, and places of employment. Is it located in an urban, suburban, or rural area? The idea here is that having quick, convenient access to certain amenities and resources is something that\u2019s generally valued highly by prospective buyers.<\/p>\n I also recommend taking note of whether the property is located in a flood zone. All things being equal, most buyers are likely to view this as a slight negative.<\/p>\n<\/div>\n Depending on the market you\u2019re located in, newer properties are generally viewed more favorably. This is because the homes are more likely to be built to comply with the most up-to-date building and safety codes, as well as utilize more modern materials. Some buyers may also consider the fact that newer homes are less likely to require repairs or maintenance in the near-term.<\/p>\n<\/div>\n Make note of the type of property you\u2019re evaluating, such as whether it\u2019s a single family home, condominium, multi-unit property, townhome, attached versus detached property, and whether it\u2019s located in a planned unit development (PUD).<\/p>\n This will be important when you\u2019re looking for comparable homes because in most instances, a buyer won\u2019t be interested in anything that\u2019s too drastically different from what they initially had in mind. In other words, someone looking to buy a 1-unit single family home probably won\u2019t be interested in buying a 4-unit property.<\/p>\n<\/div>\n This might require a physical inspection of the property, but you\u2019ll want to determine what the architectural design of the home is like. The idea here is that when you look for comparable properties, you\u2019ll want to select those that are similar in design as those are the properties most likely to appeal to the same type of buyer. You\u2019ll also want to ensure that the design is typical and conforms to the neighborhood.<\/p>\n<\/div>\n This can be broken down into the gross living area, total square footage to include things like an unfinished basement, as well as the total lot size to include things like a backyard or other outside areas.<\/p>\n<\/div>\n The number of bedrooms and bathrooms is a critical factor that will impact the price of a home. In addition to the number of rooms, however, you should also consider the type and features of each. For instance, a bedroom with a five-piece en suite bathroom is something that would be considered more valuable than a standard bedroom. Similarly, full bathrooms that have a toilet, sink, and shower, are considered more valuable than half bathrooms that may not have a shower or bathtub.<\/p>\n<\/div>\n Amenities and special features that can add value to a property can include things like solar panels, fireplaces, patios, decks, and pools. If the property is located in a homeowner\u2019s association, it can also include things like tennis courts, basketball courts, and an on-site gym.<\/p>\n<\/div>\n Car storage can include things like a carport, assigned parking space, or a garage. In addition to the type of storage available, take note of whether it is attached or detached to the property, and how large it is. Generally speaking, attached garages add the most value to a home, followed by a carport and assigned parking space.<\/p>\n<\/div>\n Having standard utility connections for things like internet, water, electric, and gas is something that can easily be taken for granted, but it\u2019s still worth checking, especially for rural or older properties. Verifying that the property has the proper hookups for appliances, such as a refrigerator, oven, dishwasher, microwave, and washer\/dryer can also avoid any last-minute surprises when showing the property to prospective buyers.<\/p>\n<\/div>\n All things being equal, properties with a beneficial view have the ability to fetch a higher purchase price. Typical examples of a beneficial view can include a property that overlooks a city, park, golf course, lake, or mountain. Adverse views are often regarded as properties that only have a view of a parking lot, street, railroad tracks, high tension wires, garbage dumps, or commercial buildings.<\/p>\n<\/div>\n Property rights can either be fee simple or leasehold. Fee simple is the most common and grants full permanent ownership of the property and any buildings on it to the owner. A leasehold, on the other hand, grants only temporary use of the land.<\/p>\n For homeowners, fee simple is considered more desirable, and is something that will provide more value versus a similar property offered as a leasehold.<\/p>\n<\/div>\n The amount of HOA dues and property taxes affect a home\u2019s affordability. All things being equal, higher taxes and HOA dues tend to correlate to lower sales prices for the home. HOA dues may also include special assessments, something that can further detract from a home\u2019s value.<\/p>\n While paying more fees is not ideal, do keep in mind that the cost of HOA dues can sometimes be offset by the amenities offered. Common examples include a pool, tennis courts, basketball courts, and gym facilities.<\/p>\n<\/div>\n A home\u2019s value is often tied to market trends in the specific neighborhood it\u2019s located in. Completing a thorough CMA should include an evaluation of the trend of property values, supply and demand of homes in the area, and total marketing time.<\/p>\n While it might seem silly to say, homes in better condition typically fetch a higher sales price. If you\u2019re doing a CMA, check to see if there are obvious repairs needed to the property. This includes the presence of any health or safety hazards, as well as other physical deficiencies that could impact the livability or structural integrity of the home. These are items that could also be tied to the property\u2019s age.<\/p>\n Other adverse items may include environmental conditions, easements, or encroachments that limit or restrict the use of the property.<\/p>\n<\/div>\n Once you\u2019ve gathered data on your subject property, the next step is to find similar homes as your comparables to support your home\u2019s value. You can use the free CMA worksheet template <\/strong>linked above<\/a> to follow the steps outlined below, where I go over how you can start the process of finding good comps, as well as key features to take note of.<\/p>\n It might be tempting to try and find comps based on specific characteristics, like whether a home has a pool, or how many bedrooms and bathrooms it has. However, I recommend starting at a high level by narrowing down your geographic area and specific neighborhoods. Location is a key factor for buyers, and is arguably one of the most important items when it comes to selecting a home. <\/p>\n Various resources, such as your MLS, offer map drawing tools and filters to allow you to begin this step of finding your comps. <\/p>\n Once you\u2019ve narrowed down the area for your comps, you can start to focus on specific features and characteristics. Using our free CMA worksheet template or the list of features we listed above in step 1, you\u2019ll want to find properties as similar as possible to your subject property. <\/p>\n You\u2019ll also want to consider the following in selecting your comps:<\/p>\n Once you\u2019ve selected your comps, the next step will be to adjust for any differences in features between your subject property and the comps. This will be something you should expect to do for most of your comps, since it\u2019s rare to find two identical properties. <\/p>\n For example, in the image below, we can see that our comp property has 1 extra bedroom and is larger by almost 800 square feet. We\u2019ve estimated that the extra bedroom is worth $7,000 in value, with the additional square footage being worth $3,000 in value. In order to see what our subject property is worth based on these differences, we need to adjust the comp property to be as similar as possible. <\/p>\n This can be done by removing the value of the comp\u2019s extra bedroom and square footage. We take the sales price of the comp, and subtract the corresponding values of $7,000 and $3,000. By subtracting these figures, we can see what the comp would have sold for assuming it did not have the extra bedroom and square footage, and subsequently, the market value of our subject property. The same adjustments can be made across the board for all of a property\u2019s features such as its view, location, age, condition, and other items we\u2019ve mentioned previously.<\/p>\n So how would you know what the appropriate adjustment amount is? For instance, how would you know whether a buyer values an extra bedroom at $5,000 or $10,000? I\u2019ll be the first to say that you should let the data drive the math. You\u2019ll need to look at other comparables where the primary difference is the bedroom count, and use that difference in sales price to determine the dollar amount to attach to the value of a single bedroom. <\/p>\n Your CMA report can include a range for how much a property is worth. This range can help capture differences in how buyers might value certain items differently. It can also help you account for future changes in the local market that could impact the value of the home. <\/p>\n For example, construction for a nearby grocery store could help increase the future value of a home, while a city construction project for storm sewers could negatively impact the short-term value due to the anticipated increase in noise.<\/p>\n Now that you\u2019ve got all of the data for your CMA, you\u2019ll need to put it into a format that will be easy to understand and visually appealing. This is a great marketing opportunity for you to really stand apart from other real estate agents, and it\u2019s a chance for you to show your knowledge and expertise in this market. <\/p>\n In addition to the items listed below, you can include elements from our CMA worksheet as well as our guide for listing presentations<\/a>. <\/p>\n For some help in making your CMA report visually pop and be easy on the eyes, you can use software like Cloud CMA or use templates on Canva and Etsy<\/a>. If you\u2019re looking for some inspiration, below are some examples of aesthetically pleasing CMAs. If you\u2019re using a CMA as part of your prospecting strategy, feel free to also take a look at our prospecting letter templates<\/a>.<\/p>\n By Socialbinder<\/em><\/p>\n<\/p><\/div>\n By PetitelenaCreative<\/em><\/p>\n<\/p><\/div>\n By CreateDigitalCo<\/em><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n Not necessarily. Determining a property\u2019s value is part art, part science. Different buyers place a different value on certain features and characteristics. Because of this, it\u2019s not uncommon to come to a slightly different conclusion on a property\u2019s value.<\/p>\n<\/div>\n A CMA helps determine what a property is worth. If you are a listing agent, this can help you figure out what sales price to set in order to attract the largest number of buyers. As a buyer\u2019s agent, this can help you determine whether a property is within your client\u2019s price range, and what would be considered a competitive offer that a seller is likely to accept.<\/p>\n<\/div>\n This can vary by market, but I recommend at least 3 closed sales within the last 0 to 12 months, and at least 1 or 2 active listings. If you\u2019re not able to find similar properties or homes that have recently sold, you may want to up the number of comps to support your opinion of value in the CMA report.<\/p>\n<\/div>\n The main difference between a CMA and an appraisal is the intended purpose. A CMA is used primarily to determine a home\u2019s listing price to attract as many buyers, as well as an appropriate offer price to increase the likelihood of being selected by the seller. An appraisal is performed by a licensed appraiser, typically for the purposes of determining the value of the property from a lending and insurance perspective.<\/p>\n<\/div>\n The location of your comps is perhaps the single most important factor in ensuring an accurate CMA. Location determines how close it is to schools, shopping centers, employment areas, and more. These are items that most buyers place a high value on, and will therefore have a large impact on the value of the home.<\/p>\n<\/div>\n As a listing agent, a properly researched CMA can help ensure you price a property just right to attract the most buyers and get the highest sales price. As a buyer\u2019s agent, you can ensure your clients place competitive offers to maximize the odds of getting accepted by the seller. While it may be a time-consuming process, conducting the proper due diligence in preparing a CMA can allow you to have a large payoff at the end of the day. <\/p>\n Have any tips or specific questions? Leave them in the comment section below!<\/p>\n The post How to Do a Comparative Market Analysis: A Step-by-Step Guide<\/a> appeared first on The Close<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" A comparative market analysis (CMA) helps estimate the value of a property based on comparisons to current active listings and homes that recently sold. 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Step 1: Gather data on your subject property<\/h2>\n
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<\/span>\n<\/div>\n1. Property location
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\n2. Year built
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\n3. Property type
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\n4. Property design, style, and use
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\n5. Square footage
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\n6. Room count
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\n7. Amenities & special features
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\n8. Car storage
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\n9. Utilities and appliances
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\n10. View
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\n11. Property rights and zoning
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\n12. Amount of homeowner\u2019s associated (HOA) dues and property taxes
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\n13. Neighborhood trends
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\n14. Property condition, age, & other adverse items
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\nStep 2: Research the market & choose comparable properties<\/h2>\n
![\"The](\"http:\/\/www.online-casinos-download.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-04-at-5.52.43\u202fPM.png\")
<\/figure>\n<\/div>\nFinding good comps<\/h3>\n
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Key features to analyze<\/h3>\n
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Step 3: Evaluate the comps & adjust for differences<\/h2>\n
![\"Infographic](\"http:\/\/www.online-casinos-download.com\/wp-content\/uploads\/2025\/03\/Infographic-Comp-Adjustment-Example.png\")
<\/figure>\n<\/div>\nDetermining the amount of adjustments<\/h3>\n
Market trend analysis and value range<\/h3>\n
![\"infographic](\"http:\/\/www.online-casinos-download.com\/wp-content\/uploads\/2025\/03\/Infographic-Micro-Market-Trends.png\")
<\/figure>\n<\/div>\nStep 4: Prepare your CMA report<\/h2>\n
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CMA templates<\/h3>\n
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\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n<\/p><\/div>\nCMA frequently asked questions (FAQs)<\/h2>\n
Is it a problem if my CMA is different from another agent?
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\nWhat is the purpose of a CMA?
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\nHow many comps should I use in my CMA?
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\nWhat\u2019s the difference between a CMA and an appraisal?
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\nWhat\u2019s the most important factor to consider in my CMA?
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\nBringing it all together<\/h2>\n