A Comparative Market Analysis is the most important document you'll produce for a seller. Done well, it builds trust, sets realistic expectations, and gives you a fact-based foundation for the most emotionally loaded conversation in real estate: what is this home worth?

Done poorly — rushed, thin on data, or padded to match the seller's expectations — it sets you up for a listing that sits until you have an uncomfortable price-reduction conversation two months later.

Step 1: Gather subject property data

Before you pull a single comp, know your subject property cold. Document: address, beds, baths, square footage, year built, lot size, property type, condition (excellent/good/fair/needs work), garage, stories, notable features (pool, view, recent renovation), and any liens or HOA fees.

The more precisely you describe the subject property, the more accurately you can select and adjust comps. Vague subject data leads to sloppy comparisons.

Step 2: Define your comp search parameters

Location

Start with a 0.5-mile radius. If you can't find enough comparable sales (aim for 5–8), expand to 1 mile. In rural markets or low-turnover neighborhoods, you may need to go wider or extend your time window. In high-density urban markets, a single block difference can represent significant value shifts.

Time

The gold standard is 90 days. In fast-moving markets, focus on 60 or even 30 days — old comps in a rising market can significantly undervalue a home. In slow markets, you may need 6 months but should note the market conditions at time of sale.

Property characteristics

Comps should be similar in: beds/baths (within 1), square footage (within 15–20%), year built (within 20 years unless renovated), property type (single family to single family), and condition. Don't compare a renovated kitchen to a 1985 original — or flag the difference explicitly and adjust for it.

Step 3: Pull and evaluate your comps

Run your MLS search and pull every closed sale that meets your criteria. For each one, note: sale price, list price, days on market, price per square foot, notable differences from your subject property, and any seller concessions that may have inflated or deflated the sale price.

Price concessions are the hidden distortion in comps. If a seller paid $10,000 of buyer closing costs, the effective sale price was the contract price minus $10,000. Failing to adjust for this overestimates comp values.

Step 4: Make adjustments

Adjustments are where experienced agents earn their credibility. For every meaningful difference between a comp and the subject property, you adjust the comp's sale price up or down to reflect what it would have sold for if it matched the subject.

Common adjustments: square footage (typically $X/sqft in your market), bedroom count, bathroom count, garage, pool, lot size, condition, year built, view. Get your adjustment values from your local market data — price per sqft, for example, varies widely by market and neighborhood.

Step 5: Reconcile and arrive at a value

After adjustments, each comp gives you an adjusted value. Weight the comps by how similar they are to the subject — closer comps in time and location get more weight. Average the adjusted values and you have your indicated market value.

Present a range, not a single number. "The data supports a list price of $425,000–$445,000 based on recent comparable sales" is honest and defensible. A single number implies false precision.

Step 6: Build the presentation

Your CMA document should show: the subject property details, your comparable sales with photos and key data, your adjustments with explanation, the resulting value range, and a recommended list price with your reasoning. Include active listings — these are your competition. Include expired listings — these show where the market rejected pricing.

AI-powered CMA tools can now pull live comp data, apply automated adjustments, and generate a professional narrative and branded PDF in minutes rather than hours. The human judgment still belongs to you — which comps to use, which adjustments are appropriate, how to read the local nuance. But the data gathering and formatting can be dramatically faster.

Delivering the CMA to sellers

Don't email it cold. Walk through it in person or on video. Show the data, explain your methodology, and let the numbers do the work. The most common mistake is being too deferential — agreeing to overprice because the seller pushes back. Your job is to deliver honest analysis, not to tell them what they want to hear. The market will correct a wrong price; your reputation takes the hit either way.

How to Do a CMA: A Step-by-Step Guide for Real Estate Agents