AI Comparable Market Analysis Generator

A CMA is a report that estimates a property's value by comparing it to similar recently sold properties in the same area. Real estate agents use CMAs to help sellers set competitive listing prices and help buyers make informed offers. Unlike a formal appraisal, a CMA is prepared by agents and focuses on market-driven pricing rather than certified valuations.

A strong CMA typically includes three to six comparable properties that sold within the last three to six months and are located within a one-mile radius. The best comparables match the subject property in size, age, condition, and features. Including too few comps weakens the analysis, while too many can dilute the pricing clarity if they vary widely.

Adjustments account for differences between the subject property and comparables. Common adjustments include square footage differences, bedroom and bathroom count, lot size, garage spaces, renovations, pool or outdoor features, and location factors. Positive adjustments increase a comp's effective price when the subject has a superior feature, and negative adjustments decrease it.

A CMA is prepared by a real estate agent to guide pricing decisions and is typically provided at no cost to clients. An appraisal is conducted by a licensed appraiser, follows strict regulatory standards, and produces a legally binding valuation used by lenders. While both use comparable sales data, appraisals carry legal weight and are required for mortgage financing.

In active markets, a CMA should be refreshed every 30 to 60 days, as new sales data can shift pricing recommendations. If a property has been listed for more than 30 days without offers, an updated CMA helps determine whether a price adjustment is needed. Seasonal market shifts and interest rate changes also warrant fresh analysis to ensure pricing remains competitive.