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You’ve heard of Property Assessments, Appraisals, and a Comparable Market Analysis. 

In fact I did a video called: “Property Assessments vs. Appraisals vs. Comparable Market Analysis”. In that video I discuss how your home has 3 different values.

I also cover the difference between Property Assessments vs. Appraisals vs. Comparable Market Analysis, and what your home is really worth if you were going to sell.

Today I want to talk about exactly what a Comparable Market Analysis [CMA] should contain.

No doubt you get flyers & post cards every day from local real estate agents offering you a CMA or free reports on how much your home is worth.

But how do you know if you’re getting a good or accurate CMA? In other words, what should be in a CMA or Comparable Market Analysis?

The most important thing that matters when you’re trying to determine what your home would sell for are comparable sales. In other words comparable properties that have actually SOLD recently, and for how much?

Sold Comparables: The first of three main components of a good Comparable Market Analysis [CMA]. 

Sold comparables are homes that have sold recently in your neighbourhood. They’re also properties  most similar or resembling your home. 

Those sold properties that are a similar size home, on a similar size lot, built around the same time period, and offer the similar features, amenities, upgrades. 

And of course kept up in the same condition as your property. 

A larger or smaller home on a larger or smaller lot is not really a comparable. 

A 20 year old home with modern and updated kitchens, bathrooms, and floors, isn’t really comparable to a 20 year old that hasn’t been updated. 

The same size house on your street, with a finished basement that is a walk-out basement, isn’t comparable to a house with an unfinished basement, that is not a walk-out basement. 

The same size house with a single-car garage isn’t the same as the same size house with a double-car garage. 

And of course, pools, landscaping, number of bedrooms and bathrooms, or basements with a separate entrance, all factor in. 

The second main component of a good Comparable Market Analysis  [CMA] are Active Listings: 

You always want to know who your competition is.

You want to look at active listings that are “comparable” homes and currently for sale. They are your competition for potential buyers. 

Remember they aren’t actually an indication of what your home is worth because sellers can ask whatever they want for their home. It doesn’t mean they will sell for the price they ask. 

But they do help you price your home strategically to ensure you get traffic and attract potential buyers. 

You don’t want buyers to go see your competition and not come see your listing.

The third main component of a good Comparable Market Analysis  [CMA] are listings with the following status: “Deal Fell Through”,  “Terminated”, or “Suspended/Expired”. 

These listings were taken off the market for different possible reasons. Sometime they realized (by lack of showings or no offers) that their prices were too high.

Or they might have only received low-ball offers which also could mean their price is too high. 

However, listings can also be cancelled, terminated, or suspended for these reasons:

  • The sellers don’t want to sell anymore.
  • The DOM (days on market) was getting too long, which in some people’s minds means a listing looks “stale”.
    Agents sometimes withdraw listings so they can put them back as a “new” listing.
  • The deal fell through during the conditional period because the buyers were unable to get financing or the appraisal wasn’t high enough.

And finally Expired Listings; these are listings that did not sell for a variety of possible reasons. But, rather than terminate or suspend the listing, the seller and/or their real estate agent decided to let the listing run its full term of contract on MLS.

If you want to know more about the value of your home, more about your local market, or how your property compares to others, don’t hesitate to email or call me. I’m happy to answer your questions.