CMA is real estate shorthand for "Comparative Market Analysis." A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.  CMA’s are also commonly referred to as “comps” or “comparables.”

     The first thing an agent will do to provide you with a CMA is to inspect your property. This inspection is similar to a simple “walk through”(the agent isn’t going to crawl under the house to examine the foundation). The house does need to be totally cleaned up or ready for an open house but should be in such a condition that the agent can make an accurate assessment of its condition and worth. If you plan to make changes, alterations, or other improvements to your home before selling, inform the agent at the time of the inspection.

     The next step is for the agent to obtain data on comparable properties. This data is usually available through the MLS (Multiple Listing Service), but a qualified agent will also know of properties that are on the market or have sold. This will give the agent a reasonably accurate idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.

     The CMA process takes place before your home is listed for sale and provides a good assessment of the potential selling price of your house.

CMAs are not only for prospective sellers. Buyers should consider requesting a CMA for properties they're seriously looking at to determine whether the asking price is a true reflection of the current market.  Owners who are upgrading or remodeling can benefit from a CMA when it's used to see if the intended changes will "over-improve" their property compared to others in the neighborhood.