A Comparative Market Analysis (CMA) helps you determine a competitive and realistic price for a property based on recent market activity.

Many MLS systems and REALTOR® boards also provide access to additional CMA tools like RPR and Cloud CMA, which can help you build more detailed reports and presentations.

Where to Run a CMA

You can run a CMA using:

• Your MLS system (primary source of data)

• CMA tools within your CRM (such as BoldTrail)

• Third-party tools provided through your board or MLS, including:

  • RPR

  • Cloud CMA

These tools can help automate reports, but your analysis is what makes the CMA accurate

When to Run a CMA

You should complete a CMA when:

• Preparing to list a property

• Advising a seller on pricing

• Helping a buyer determine a strong offer

• Evaluating investment opportunities

• Reviewing price adjustments for an active listing

How to Choose the RIGHT Comps

This is where most agents need guidance.

Start with Recently Sold Properties (Your Foundation)

Look for:

• Closed within the last 3–6 months

• Same neighborhood (or as close as possible)

• Similar:

  • Square footage (±10–20%)

  • Beds/baths

  • Year built

  • Style (ranch, two-story, etc.)

These determine actual market value.

Then Layer in Active Listings (Your Competition)

Ask:

• What else can a buyer choose instead?

• Are those homes nicer or less updated?

• Are they sitting on the market?

This helps you avoid overpricing.

Use Pending Listings (Market Direction)

Pending homes tell you:

• What buyers are currently willing to pay

• Whether the market is moving up or down

Review Expired Listings (Reality Check)

If a similar home didn’t sell:

• Was it overpriced?

• Was the condition poor?

• Was marketing weak?

This helps you avoid repeating mistakes.

How to Evaluate Your Comps (This is the Key Skill)

Pulling comps is easy. Interpreting them correctly is what sets you apart.

1. Look Beyond the Numbers

Always review:

• Listing photos

• Agent remarks

• Days on market

Two homes with the same stats can have very different values based on condition.

2. Compare Condition Honestly

Ask yourself:

• Is your subject property updated, average, or dated?

• Do your comps match that condition?

A fully renovated home is NOT a comp for a fixer-upper (and vice versa)

3. Watch Price Per Square Foot (But Don’t Rely on It Alone)

Use it as a guide, not a rule.

• Large homes often have lower $/sqft

• Smaller homes often have higher $/sqft

Always cross-check with actual sold prices

4. Adjust for Key Differences

Make mental (or written) adjustments for:

• Pools

• Garages

• Lot size

• Upgrades/renovations

• Location (cul-de-sac, water view, etc.)

5. Identify the Trend

Ask:

• Are prices increasing or decreasing?

• Are homes selling quickly or sitting?

• Are there price reductions happening?

This helps you position the property correctly today, not 3 months ago

Step-by-Step: Running a CMA

Step 1: Search in Your MLS

Start with your MLS and apply filters for:

• Location

• Property type

• Beds/baths

• Square footage

• Year built

Step 2: Select 3–6 Strong Comps

Choose the most similar homes—not just the closest or newest.

Step 3: Analyze and Compare

• Review photos and condition

• Compare features

• Note differences

Step 4: Cross-Check with CMA Tools

Use tools like:

• RPR

• Cloud CMA

These can help validate your pricing and create client-friendly reports

Step 5: Determine a Price Range

• Low: Fast sale

• Mid: Market value

• High: Strong condition / testing the market

Best Practices

• Stay within the same neighborhood whenever possible

• Use the most recent sales first

• Prioritize similar condition and style

• Always be ready to explain your comp choices

• Re-run your CMA if the property doesn’t sell

Common Mistakes to Avoid

• Picking comps just to justify a higher price

• Ignoring condition differences

• Using comps that are too far away

• Relying only on automated CMA tools

• Not factoring in current competition