How to Perform Your Own Comparative Market Analysis (CMA) for a Home

Performing your own Comparative Market Analysis (CMA) is a fundamental step for any serious home buyer or seller. By analyzing recent sales of comparable properties and current market listings, you can determine a home's fair market value and make an informed decision. You no longer need to rely solely on a real estate agent for this critical data; with access to online real estate platforms, you can conduct a thorough CMA independently. This guide outlines the key steps to effectively evaluate a property's price.

What Data Do You Need to Start a CMA?

The foundation of any accurate CMA is relevant and recent data. Your goal is to compare the subject property—the home you are interested in—to similar properties, known as "comparables" or "comps." The essential data points to gather include:

• Subject Property Details: Square footage, number of bedrooms and bathrooms, year built, and condition.
• Recent Sales: Prices of similar homes that have sold in the past 3-6 months.
• Active Listings: Current asking prices of similar homes on the market, which indicate competition.
• Price per Square Foot: This metric helps standardize comparisons between homes of different sizes.

For example, consider a hypothetical one-bedroom condo in a downtown Seattle neighborhood. The first step is to gather its basic specifications from the listing.

How Do You Analyze Similar Listings on the Market?

Once you have the subject property's details, your next step is to analyze the competition. Search for active listings with similar characteristics in the same area. Filter your search based on key criteria like property type, square footage, and the number of bedrooms.

Sample Market Snapshot for Downtown Seattle Condos (1-2 Bedrooms)

This data provides a snapshot of the current market. If the subject property's price per square foot is significantly higher than the average, you need to investigate why—perhaps it has recent renovations or premium views. This comparison helps you understand how the home is positioned against its immediate competition.

What is the Most Important Part of a CMA?

While active listings are helpful, the most critical component of a CMA is reviewing sold properties. The sale price of a home is a concrete data point reflecting what a buyer was actually willing to pay, unlike listing prices which are merely aspirations. To access this information, use the "past sales" or "sold homes" filter on real estate websites, typically setting the timeframe to the last six months for the most relevant data.

By examining recently sold comparables, you can see the final transaction prices for homes very similar to your subject property. For instance, you might find that two units in the same building sold within the last year. Clicking on these sold listings allows you to compare their features and final prices directly to the home you are evaluating. This historical data is the strongest indicator of true market value.

How Do You Finalize Your Assessment?

After compiling data on active listings and recent sales, the final step is a side-by-side comparison. Create a simple mental or written checklist:

• Does the subject property’s list price align with the price per square foot of recently sold comps?
• Is it priced competitively against other active listings?
• Are there any unique features that justify a price premium or discount?

Based on our experience assessment, a reliable CMA relies on a balance of data. Give more weight to recent sales than active listings. The final value you determine will empower you to make a confident offer or set a competitive asking price.

The key to a successful DIY CMA is a methodical approach focused on recent, comparable sales data from the same neighborhood.