How to Get a CMA Report When Selling Your Home

When you decide to sell your home, one of the first documents you will review is the comparative market analysis (CMA). This document evaluates similar properties in your area that have sold recently, providing a guide for what your home is worth.

While you can conduct an informal comparative market analysis by looking at houses in your neighborhood and surrounding community, your real estate agent will pull a formal one with the resources available to them. 

This guide will show you how to get a CMA report to learn the fair market value of your home. It will also review best practices to ensure the information is as accurate as possible. Here’s everything you need to know about a CMA.

What is a Comparative Market Analysis (CMA)?

A comparative market analysis is an in-depth report of on a home’s current value that also looks at properties sold in your area with similar characteristics. Your agent will evaluate these homes to estimate what your house should sell for. The more data your agent can pull, the better picture they can develop for neighborhood property values.

Here are a few criteria your Realtor will use when developing a CMA:   

• Sales window: most real estate professionals will only look at properties that were on the market within the last 30 days. Real estate markets are incredibly volatile, even on a local level, and looking at outdated information can cause a pricing mismatch. 
• Square footage and lot size: your Realtor will look for houses that have the same number of bedrooms and bathrooms, have similar square footage amounts, and are built on the same-size lots. The closer two homes are to each other, the more accurate the comparison can be. 
• Condition: the state of the home has a big impact on its value. One three-bedroom house could sell for considerably more than another if the interior is updated and clean while the exterior is well-maintained. 
• Location: the location of the property can have a big impact on price. Houses on major roads will have different listings than those tucked into neighborhoods.

A CMA is not the same as an appraisal. It is not an official document that can be used by a buyer’s mortgage lender to secure a loan. However, it is a valuable tool for setting competitive listing prices within the local market. 

While your Realtor prefers to pull recent closings – showcasing the final sale price in the area – they also might look at active listings or expired listings to gain insight into what is happening in your neighborhood. 

How to Get a CMA Report

Evaluating comparable properties is pretty straightforward, and you can do this process on your own or with the help of a real estate expert.

Here are the steps to get a feel for the local market or to take a deep dive into your neighborhood and the houses currently selling near you.

Step 1: Consult with a Real Estate Agent

The easiest way to look at comparable properties is to contact a licensed Realtor. Your agent should provide a CMA for free during the interview process and again when you decide to sell your home. 

Realtors have access to MLS (Multiple Listing Service) data, which provides the most up-to-date and accurate information on comparable homes. They will narrow their search and only look at properties in the same neighborhood as your listing. They will also eliminate outliers like damaged properties, houses on busy street corners, and homes with significant renovations and features. 

While you can conduct a CMA on a subject property on your own. Letting a real estate professional do it for you is often the easiest option.

Step 2: Request a Free CMA from an Agent

Many agents offer a free CMA as part of their services to potential sellers or buyers. This means you might be able to secure a free comparative market analysis report without having to immediately hire a Realtor. You will likely receive multiple reports with different sale prices when you interview different agents. This allows you to compare results and choose the most reasonable options. 

You aren’t necessarily trying to get the highest listing price out of the different CMAs. If a Realtor estimates that the house will sell for more than it will, you could list the property and then feel stuck as it sits on the market without any offers. Instead, review the comparable properties and ask why the Realtor chose them. Confirm that the CMA makes sense and is thoroughly researched. This will make you feel confident when the time comes to hire a representative to sell your home.

Step 3: Use Online Tools (If Applicable)

If you don’t want to hire someone in the real estate field to estimate the market value of your home, take steps to run a CMA yourself. You can find a comparative market analysis example online and follow the outlined steps to find similar properties. 

Start by looking at online platforms like Zillow to see the final sales prices of similar homes in your area. Track how long they stay on the market and consider the condition each of the homes is in. You will also want to consider factors like the school district that each home is in. Two houses in the same neighborhood could have different values if they belong to different districts. 

Focus exclusively on recently sold properties. The longer back the listing was posted and closed, the less reliable the data. You can also note adjusted sales prices between initial listings and closings. Not how many houses in your area are dropping their listing prices. 

One risk of performing a CMA yourself is the inherent bias that comes with owning your home. Sellers often overvalue their houses. They believe their upgrades are worth more than they are and want to maximize their profits. This bias could cloud your judgment and cause you to identify an estimated market value that is higher than it should be. The best way to get an objective CMA is to hire a Realtor.

How Much Does a Comparative Market Analysis Cost? 

In most cases, the comparative market analysis is free for sellers. Your Realtor should provide a CMA as part of their services. Real estate professionals have access to tools and industry knowledge which allows them to quickly pull CMAs. They can select houses from the MLS that they think compare to yours and explain their recommendations for pricing with this information. 

There are some instances where a real estate agent will charge a small fee for their CMA. However, they may build this into their commission and closing costs. Ask about the cost of a CMA if you suspect your Realtor will charge for it. 

At FastExpert, we always recommend interviewing multiple real estate professionals before hiring the best one. It is a standard practice for a Realtor to bring the CMA to the initial meeting or interview. They will go over the comparative properties they selected and explain how they value your home. The should also leave the CMA with you after the appointment to review. 

By interviewing multiple agents, you can get a fair idea of what your home is worth. If three agents all estimate your home is worth $400,000 with similar CMAs, you can trust the data. If one agent believes the house is worth $350,000 and the other thinks it will sell for $450,000 you may want to learn why there is such a big discrepancy.   

Your Realtors should go over their methodology for developing your CMA. They shouldn’t pick houses randomly and estimate your market value. You want your Realtor to be strategic and thorough in how they research your home.

How Often Should You Get a CMA?

Your Realtor will give you a comparative market analysis during the initial interview and they should provide updated reports throughout the home sale process. When comparative properties go under contract or close in your area, they can use this data to modify the CMA. If market trends shift, driving prices up or down, your real estate agents should be ready with new information. 

The real estate professional you hire should provide a new comparative market analysis at least every 30 days. You may ask for comparisons more often if the market is changing quickly where you live. 

If your house is on the market for longer than you would like, you may want a fresh comparative marketing analysis the make sure your asking price falls within a reasonable range. Your price may be too high, which will drive away buyers who don’t feel like the house provides value.  

Buyers can also benefit from looking at CMAs. Real estate agents sometimes provide these documents to give their clients an estimate of what homes are selling for in specific areas. Buyers can use this information to avoid overpriced homes, find good deals, and negotiate with sellers reasonably.

Benefits of a Comparative Market Analysis

There are several reasons to carefully review your comparative market analysis and use this tool throughout the real estate process. Here are a few reasons why following the prices of similar properties can make selling yours easier. 

• It helps you set a competitive listing price. This will make you more likely to attract buyers without undervaluing the property.
• It provides insight into how long it may take to sell the home. Not only can a CMA provide pricing insights, but it can also give you an idea of how long houses stay on the market based on current conditions.
• It helps buyers avoid overpaying for a property. This also benefits sellers in case the appraisal is less than the asking price. Everyone can be aligned on the value of the home. 
• It makes real estate investors more informed. They can look at market trends and estimate their potential profits from specific homes. 

At its most basic level, the CMA provides a reasonable asking price for sellers that increases their chances of attracting buyers. However, this tool can also be used to estimate timeframes, plan investments, and guide buyers. Everyone can benefit from a reliable comparative market analysis.

How a Realtor Helps with a CMA

Hiring an experienced agent to pull data points and create a real estate CMA can help you save time while getting an accurate report on what your home’s sales price could be. Here are a few reasons to work with someone in the real estate field when you need to know the estimated value of your home:

• They have access to MLS Data: agents have access to comprehensive data on recent home sales and current market trends that aren’t available to the public. While you can use tools like Zillow, Realtors have more data.
• They have local market expertise: Real estate agents know the nuances of local neighborhoods and market trends that may impact a home’s value. They can explain why homes in the same school district are comparable but nearby properties are not. 
• They can make custom adjustments: Agents can tweak the CMA based on specific features of the property. For example, if you have a finished basement, installed a pool, or updated the kitchen. 
• They can help you with negotiations: Sellers can understand what their homes are worth and won’t accept low-ball offers. They can feel more confident when negotiating deals. 

While you can conduct an amateur CMA on your own, your Realtor has dedicated tools to help with the process. Letting them do the CMA will mean less work on your end and greater accuracy in the finished estimates.

Ask Your Real Estate Agents About Comparable Properties

Pulling a comparative market analysis is a natural part of the real estate interview process. Your agent should arrive with a CMA during your first meeting and review how they pulled comparable properties. Not only will this give you insight into the local market, but it can also help you decide which Realtor to hire. An unprepared agent will not support you during the sales process. 

Turn to FastExpert to find a trustworthy Realtor in your area. You can review the profiles of local agents and choose the best ones to interview. This can make you feel confident in the home sale or home purchase process. 

Entering the real estate market doesn’t have to be stressful if you have a trusted partner to support you. FastExert can pair you with leading agents who can help you make informed choices. Find an agent today.