Comparative Market Analysis (CMA)
An estimate of a property's value prepared by a real estate agent using recent sales, active listings, and pending sales data. A CMA is not an appraisal and cannot be used for lending purposes.
A CMA is commonly prepared by listing agents to help sellers set asking prices or by buyer's agents to evaluate offer prices. While CMAs use similar data to appraisals (comparable sales, market trends), they are not regulated by USPAP, do not require a licensed appraiser, and lack the rigor and standardized methodology of a formal appraisal. CMAs typically do not include adjustments for individual property differences and often rely on price-per-square-foot comparisons. The distinction between a CMA and an appraisal is important — using a CMA in place of an appraisal for lending purposes is prohibited.
Related Terms
Market Value
The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..
Sales Comparison Approach
A valuation method that estimates a property's value by comparing it to similar properties that have recently sold in the same market area.
Comparable Sale
A recently sold property that is similar to the subject property in terms of location, size, condition, and features, used as evidence to support the appraiser's opinion of value in the sales comparison approach..
Broker Price Opinion (BPO)
BPOA real estate broker's or agent's estimate of a property's probable selling price, typically prepared for a lender or servicer.
More in Market Analysis
View allMarket Conditions
The current state of supply and demand in the real estate market for a particular property type in a defined area.
Absorption Rate
The rate at which available properties are sold or leased in a specific market during a given time period.
Days on Market (DOM)
DOMThe number of days between when a property is listed for sale and when it goes under contract.
Months of Supply
The estimated time it would take to sell all current listings at the current sales pace, calculated by dividing active inventory by the average monthly sales rate.