Pricing property accurately is one of the most important skills you can develop in real estate. Whether you’re preparing for a listing appointment, helping a buyer make a competitive offer, or advising an investor, knowing how to analyze the market and support your recommendations with real numbers is what separates average agents from trusted professionals.

At the heart of that pricing strategy is a Comparative Market Analysis (CMA) — a report built from real-time data that helps you estimate a property’s value based on comparable sales in the area.

But a CMA isn’t just about pulling a few recent sales and averaging the prices. Done properly, it involves carefully selecting the right comparables, making thoughtful adjustments for differences, and understanding what those numbers reveal about buyer behavior and market conditions.

This guide will walk you through how to prepare a detailed, professional CMA from start to finish — whether you’re working with sellers, buyers, or investors.

What Is a CMA?

A CMA provides insight into what buyers in the area are willing to pay for similar homes and helps sellers understand what price range is realistic for their property in today’s market.

CMAs are prepared for new listings, when advising on price reductions or determining a fair offer price for a buyer. An accurate CMA builds credibility, reduces friction in pricing conversations, and improves the odds of a smooth, timely sale.

Where to Begin

Before you begin pulling comps, it’s essential to gather all available details about the property you’re pricing. The accuracy of your CMA depends on having the correct information upfront.

Here’s a list of the property details you’ll want to confirm:

Full property address
Tax record (assessed value, lot size, year built, property class)
MLS number (if previously listed)
Square footage (heated and cooled living space only)
Number of bedrooms and bathrooms
Lot size (square footage or acreage)
Garage size and parking features
Basement (finished, unfinished, walk-out)
Notable updates (kitchen remodel, new roof, HVAC replacement, pool, addition, etc.)
HOA fees and restrictions (if applicable)
School district, neighborhood, or subdivision details
External factors (busy road, cul-de-sac, waterfront, views, flood zone, etc.)

Tip:
Cross-check details using both tax records and prior MLS listings. Even well-meaning sellers can misremember square footage or home details.

How to Select the Right Comps

The next step is pulling comparable properties from your MLS. The comps you select are the most important part of the CMA — and poor choices here will lead to an unreliable price estimate.

Step 1 | Set your MLS Filters. These filters will help you choose homes that are most comparable to your subject property.

Property Type: Match exactly (single-family, condo, townhouse, manufactured, etc.)
Location:
- Urban/suburban areas: within 0.5–1 mile
- Rural areas: within 1–3 miles
- Same neighborhood or subdivision is ideal
Sold Date Range:
- Typically within the last 6 months (extend to 9–12 months if sales are slow)
Living Area (Sq Ft): ±10–20% of the subject property’s size
Beds/Baths: Match the number as closely as possible
Year Built: Within 5–10 years (unless the market has a broad range of ages)
Lot Size: Within ±20%
Optional Filers: For example, Pool/No Pool, Garage, View Lot, Stories…

Step 2 | Formulate a list of all listings that closely match your subject property. Make sure you are pulling sold listings, active listings/pending listings, and expired listings.

Sold Listings: These are your foundation. Sold comps reflect what buyers have actually paid and provide your most reliable data points.
Active Listings: These represent the current competition. Important to see what else buyers are considering in the same price range.
Pending Listings: These show what properties buyers have recently chosen. Pending sales can indicate pricing trends before they officially close.
Expired or Withdrawn Listings: These help identify price points the market has rejected and inform pricing strategy, especially in slower markets.

Step 3 | Narrow down your list of comparable properties, and choose your top three for each category: Sold, Active & Expired

Examine each comparable, and input the information into a chart so you can easily compare the details.

Tip:
Be cautious of outliers — avoid selecting properties that significantly differ from the subject in location, lot size, style, or condition unless necessary (and disclose when you do).

Make Price Adjustments

Once you’ve selected your comps, you’ll almost always need to make adjustments because no two properties are exactly the same. One might have an extra bathroom, another might back onto a busy street, or one might be fully renovated while the others aren’t.

The goal: Estimate what each comp would have sold for if it were identical to your subject property.

How to Calculate Adjustments:

Step 1 | Determine the $/Sq Ft Value & Adjust

Start by calculating the average price per square foot for your sold comps. For example:

Comp 1: $700,000 / 2,050 sq ft = $341.46/sq ft
Comp 2: $670,000 / 1,950 sq ft = $343.59/sq ft
Comp 3: $715,000 / 2,000 sq ft = $357.50/sq ft

Average = ($341.46 + $343.59 + $357.50) / 3 = $347.52/sq ft

If a comparable home is larger or smaller than your subject property, multiply the size difference by your average $/sq ft value to calculate the adjustment. For example:

Subject: 2,000 sq ft
Comp 1: 2,050 sq ft (50 sq ft larger)
Adjustment: 50 sq ft × $341.84 = $17,092 subtract from Comp 1’s price.

Step 2 | Adjust Features & Amenities

Not all value differences come from size. Features like pools, extra garages, remodeled kitchens, or finished basements can significantly influence a property's market value. To estimate how much value these features add or subtract, start by checking local appraisal adjustment guides if they're available in your market. If not, review recent sales of similar homes that both have and lack the feature in question to spot pricing patterns. It’s also smart to consult experienced agents in your office who have firsthand insight into what buyers in your area typically pay for certain features. This is where having a mentor or seasoned agent you trust can make a huge difference — someone who’s priced dozens of properties in your market will often have reliable instincts for what buyers are willing to pay for specific features. Combining these resources, while building your own pricing experience over time, will help you assign fair, market-supported values to home features when adjusting your comps.

Example: If comparable homes with pools consistently sell for $30,000 more than similar homes without, you’d adjust $30,000 for the presence or absence of a pool.

Step 4 | Adjust for Location Differences

Location impacts value — sometimes more than size or features.

Key factors to consider:

Is the comp on a busy road while your subject property is on a quiet cul-de-sac?
Is it in a different school district with higher or lower demand?
Does it have a water view or back onto power lines?

Example: If homes on busy roads consistently sell for $20,000 less than those on quiet streets nearby, adjust accordingly.

Analyze the Data and Determine a Pricing Strategy

Once your adjustments are complete, it’s time to step back and analyze what the numbers are telling you. Start by calculating your adjusted prices for each comp. From there, determine the average adjusted sale price, the average price per square foot, and the range of adjusted prices. This gives you a reliable data-backed starting point.

Next, factor in broader market conditions to shape your pricing recommendation:

Current Inventory Levels: Are there several comparable homes actively listed, or is inventory tight? More competition might warrant a more aggressive price.
Average Days on Market (DOM): How quickly are similar homes selling? If DOM is low, it indicates strong buyer demand.
Market Momentum: Are values holding steady, rising, or softening? Rising markets support higher pricing; softening markets may require pricing conservatively.
Seller’s Goals: Does your client need to sell quickly, or are they willing to hold out for a top-dollar offer?

Example:

Adjusted Sold Comps: $682,908, $700,000, $735,000
Average Adjusted Price: $705,969
Active Listings: 2 active at $720,000 and $725,000
Average DOM: 14 days
Market Trend: Rising demand with multiple offer activity
Seller’s Timeline: Wants to sell within 30–45 days

Decision-Making:

Given these market conditions and adjusted comp values, recommend a pricing range of $710,000–$720,000.

If the seller prioritizes a faster, smoother sale, position at $710,000 to generate strong early interest.
If the home is in pristine, move-in ready condition and the market is tight, test the higher end at $720,000.

This strategy not only leverages the data you’ve gathered but also aligns it with your seller’s needs and real-time market conditions — ensuring you list the property competitively and with confidence.

Final Thoughts

A well-prepared CMA isn’t just about numbers — it’s about positioning your client’s property correctly within the current market to attract the right buyers and secure the strongest possible outcome.

By taking the time to carefully research, adjust, and present your findings clearly, you’ll build trust, demonstrate expertise, and ultimately improve your results at the negotiating table and the closing table.