A real estate agent prepares a comparative market analysis (CMA) report for a buyer or seller, to determine the estimated value of a home. The report evaluates three or more sold properties that most closely proximate the characteristics of the home that is being valued
Homes that have sold within the past six months will contribute to giving the best estimate of value. The sold comparable properties (comps) should be similar to the subject home in age, size, location, quality, and amenities. Since no two homes are identical, the agent will make value adjustments to the differing characteristics to make the comps more on par with the subject. The final values will be averaged to arrive at an estimate of value for the subject home.
CMAs help sellers determine the listing price of their home. An agent for a buyer can help ensure that a buyer makes a competitive bid on a property by preparing a CMA for the home they wish to buy.