what is a comparative market analysis 
a comparative market analysis cma estimates a home s price based on recently sold similar properties in the immediate area real estate agents and brokers create cma reports to help sellers set listing prices for their homes and help buyers make competitive offers in addition you can perform your own comparative market analysis by researching comparable properties known as comps on real estate listing sites such as realtor com understanding comparative market analysisa comparative market analysis helps sellers choose the best listing prices for their homes the best price is one that s not so low it leaves the seller in more debt or so high the home won t sell for buyers a cma can verify if a home is in the right price range and help pinpoint a competitive offer that will be taken seriously without going overboard a cma compares a property to other homes similar in location size and features ideally a cma uses recently sold homes from the same subdivision of course finding homes that sold within the last three to six months in the immediate area can be difficult if you re in a low volume or rural real estate market in these cases a formal appraisal might be a better option a comparative market analysis is a price estimate so real estate agents and brokers don t need an appraiser s license to perform a cma while serving clients 