Notes

A comparative market analysis (CMA) is prepared by a real estate licensee for the use of a seller or buyer, so that an informed decision to determine the best price for a property may be made. CMAs are not appraisal reports, which must conform to the Uniform Standards of Professional Appraisal Practice (USPAP), and may never be referenced as such.

A CMA presents the following three categories of properties: properties that were sold during the previous 12 months; properties that are currently listed on the market; and, properties that expired in the 12 months due to a failure to sell. Properties that are selected for use in a CMA must be similar to the subject property in sale price, sale date, square footage, age, type of construction, and the property's size and location. Value adjustments must be made to the comparable property's sale price for the differences in property amenities, property conditions or conditions of sale that may affect pricing.

The CMA should be easy to read and understand. Larger brokerage firms often develop their own CMA worksheets, which are then filled out by individual licensees. Some real estate boards also have their own CMA forms or computer programs that are used to generate CMAs. There is no standard or required CMA format.