property nerds®home valuecomparative market analysis
How a CMA prices your home
A comparative market analysis (CMA) is how an agent turns recent sales into a price range for your home: pick the right comparable sales, adjust each one to your home, then check what’s for sale against it. Here’s every step, with an example grid you can check line by line.
Six stepsExample gridCMA vs appraisalWhat a walk-through adds
- comps finder window180 daysof closed sales, read live from the MLS
- comps per estimate8closest by location, size and age
- an appraisal needs3+closed comparable sales
- sold over asking60%Silicon Valley, Jan 2024–Sep 2026
how a cma works
Six steps from sales to a price range
- step01
Describe the home
Everything a buyer pays for: size, lot, bedrooms and bathrooms, age, condition, updates, layout and the street.
- Square footage from the county record and from the home itself; they don’t always agree.
- Which work had permits, because a buyer’s lender and appraiser will ask.
- step02
Pick comparable sales
Closed sales close to the home in location, size, age and type, as recent as the market allows.
- Start with the same neighborhood and the last 180 days; widen only as far as you need to.
- Match the type: houses with houses, condos with condos, in the same complex when there are sales.
- Leave out sales that weren’t on the open market, such as transfers between relatives.
property nerd tipThe closest sale on a map isn’t always the best comp. A sale across a major road, or on a busier street, can trade differently from yours. - step03
Adjust each comp to the home
Change each comp’s price for every difference, as if it were your home.
- Size: the difference in square feet times a rate that the area’s sales support, usually below the average price per square foot.
- Lot, bathrooms, garage, pool, view and condition each get their own line.
- Time: if prices moved since the comp sold, adjust for the months in between.
- step04
Reconcile
Weigh the adjusted prices instead of averaging them.
- Give the most weight to comps that needed the fewest and smallest adjustments.
- Large total adjustments mean a weak comp, however close it is.
- step05
Check the competition
Homes for sale and in contract show where buyers are heading before sales close.
- Pending sales are the freshest signal, though their prices stay private until they close.
- Listings that sit show what buyers won’t pay.
- step06
Set a price strategy
The CMA gives a range; the list price is a decision within it.
- Some sellers list near the low end to draw more buyers; others list at the value to screen out low offers.
- If a buyer will borrow, plan for the appraisal.
example grid
An adjustment grid, line by line
Example only: a made-up home and three made-up sales, to show the arithmetic. Real rates come from the sales in your area.
| Your home | Comp A | Comp B | Comp C | |
|---|---|---|---|---|
| Sale price | — | $2,050,000 | $2,180,000 | $1,940,000 |
| Square feet | 1,650 | 1,580 | 1,800 | 1,600 |
| Size adjustment at $600 per sq ft | +$42,000 | −$90,000 | +$30,000 | |
| Lot, sq ft | 6,000 | 6,200 | 5,800 | 6,000 |
| Lot adjustment at $40 per sq ft | −$8,000 | +$8,000 | — | |
| Bathrooms | 2 | 2 | 2 | 1.5 |
| Bathroom adjustment ($50,000 a full bath) | — | — | +$25,000 | |
| Condition | Updated kitchen | Similar | Remodeled (better) | Original (worse) |
| Condition adjustment | — | −$120,000 | +$100,000 | |
| Months since the sale | — | 2 | 1 | 5 |
| Time adjustment at 0.4% a month | +$16,400 | +$8,720 | +$38,800 | |
| Adjusted price | $2,100,400 | $1,986,720 | $2,133,800 | |
| Total adjustments, share of price | 3.2% | 10.4% | 10.0% | |
| Weight in the estimate | 50% | 25% | 25% |
Weighted: $2,100,400 × 50% + $1,986,720 × 25% + $2,133,800 × 25% = $2,080,330, about $2.08M, inside an adjusted range of $1.99M to $2.13M. Comp A carries the most weight because it needed the fewest and smallest adjustments.
cma vs appraisal
CMA, appraisal or online estimate?
Three ways to put a number on a home, made by different people for different jobs.
| CMA | Appraisal | Online estimate | |
|---|---|---|---|
| Prepared by | A real estate agent | A licensed or certified appraiser | A computer model |
| Prepared for | The seller or buyer, to set a price or an offer | The buyer’s lender, to decide how much to lend | Anyone browsing |
| Sees the home | Yes, on a walk-through | Usually, on an inspection visit | No |
| Sales it uses | Closed sales, plus homes for sale and in contract | At least three closed sales, adjusted on a standard form | Recent sales and public records, weighted by formula |
| Cost to you | Free from us | Paid by the borrower, as part of the loan costs | Free |
| Best for | Pricing a home to sell, or an offer to write | The loan decision | A rough starting point |
what a walk-through adds
What a walk-through adds to the numbers
- Condition and updatesThe listing photos of a comp and the county record can’t show a new roof, a dated bathroom or a foundation repair.
- Layout and lightTwo homes of the same size can live very differently: a primary suite on the main floor, a kitchen that opens to the yard.
- PermitsPermitted additions count with a lender; unpermitted ones can be treated differently.
- The lotUsable flat yard, slope, room for an ADU and how the house sits on it.
- The streetTraffic, the homes around it and what’s across the street.
- What to fix firstWhich repairs and prep pay back at sale, and which don’t.
questions
Questions we hear
Is a CMA the same as an appraisal?
No. A CMA is prepared by an agent to price a home or an offer; an appraisal is prepared by a licensed appraiser for the buyer’s lender. Both start from comparable sales, and the appraisal follows a standard form.
How many comps does a CMA need?
An appraisal must use at least three closed sales. A good CMA looks at more and keeps the best; our Comps Finder shows eight so you can see the ones it weighs least.
How old can a comp be?
As recent as the market allows. In a moving market, a sale from several months ago needs a time adjustment. Our Comps Finder looks back 180 days.
Why do adjusted prices differ from comp to comp?
Each comp needs different adjustments, and every adjustment is an estimate. The spread between adjusted prices is a fair picture of how sure the estimate is.
What does a CMA cost?
Nothing from us. Ask for one and we’ll walk the home first.
Can I do my own CMA?
You can start one. The Comps Finder picks the closest recent sales and adjusts them for size and lot; the condition, layout and street are what a walk-through adds.
more to learn
Keep going
- What’s my home worth?An instant estimate, then a Property Nerd checks it against your street.
- Comps FinderThe eight closest sales to your home from the last 180 days, adjusted to your size and lot, live.
- Home Equity CheckYour purchase price at your city’s pace, minus what you owe, with what selling would cost.
- Home ValuationMarket, list, appraised, assessed and online values: who sets each and which one matters when.
- Home AppraisalHow the appraisal works, what a gap costs and how often homes here sell over asking.
- The Three Approaches to ValueSales comparison, cost and income, with calculators for the last two.
- Online Home Value EstimatesWhat a formula sees and misses, with a live look at one city’s price spread.
- Then & Now CalculatorWhat a price from any year since 2012 is worth now, by city.
- How Much Over AskingThe Silicon Valley overbid in dollars, by year, city and price band.
- Price per Sq Ft MapMedian price per square foot by neighborhood across Silicon Valley.
- Lot Value LabWhat a bigger lot adds, city by city.
Estimates and examples for discussion only; not an appraisal, and not tax, legal or lending advice. Sales data: MLS via IDX, deemed reliable but not guaranteed. Equal Housing Opportunity.
talk to a property nerd
Want a CMA for your home?
We’ll pull the comps, walk the home with you and show you the adjustments line by line. Commissions are negotiable, and we offer bundled services, so ask us what’s included.
Eric & Janelle Boyenga
Realtors DRE01254724 / 01254725
Realtors DRE01254724 / 01254725