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Glossary
Selling

Comparative Market Analysis (CMA)

A report prepared by a real estate agent that evaluates recently sold comparable properties (comps) in your area to estimate your home's market value. A CMA considers factors like location, property size, condition, features, and how recently the comps sold. It's the foundation of any pricing strategy.

Why It Matters

Pricing your home correctly from day one is the most important decision you'll make as a seller. A well-researched CMA prevents overpricing (which leads to stale listings) and underpricing (which leaves money on the table). Ask your agent to walk you through their comps so you understand how they arrived at their recommended price.

Real-World Example

You are selling your 3-bed semi in the Danforth. Your agent prepares a CMA showing five comparable sales from the past 60 days: three sold between $1,050,000 and $1,120,000, one sold for $980,000 (it needed major work), and one sold for $1,180,000 (it had a fully finished basement suite). Based on your home's condition and features, your agent recommends listing at $1,079,000 to attract multiple offers.

Ontario & GTA Context

In Ontario, agents prepare CMAs using data from the TRREB MLS system, which provides detailed sold prices, days on market, and listing histories for comparable properties. Under TRESA, agents must disclose to sellers how they arrived at their pricing recommendation. Note that in Ontario, sold prices on MLS are accessible to registered agents but not publicly available -- buyers and sellers rely on their agents for this data.

How It Works in Practice

When interviewing listing agents, ask each one to prepare a CMA for your property. Compare the comps they selected and how they justified their recommended price. Be wary of agents who suggest an unrealistically high price to win the listing -- this strategy often backfires with a stale listing and eventual price reduction.

Common Questions

How accurate is a Comparative Market Analysis?
A CMA is only as good as the comparable properties selected and the agent's local market knowledge. The best CMAs use recent sales (within 60-90 days) of similar properties in the immediate area. A CMA is an estimate, not an appraisal -- actual sale price depends on market conditions, presentation, and buyer demand at the time of listing.
Is a CMA the same as an appraisal?
No. A CMA is prepared by a real estate agent and is used for pricing strategy. An appraisal is conducted by a certified appraiser and is used by lenders to confirm the property's value for mortgage purposes. Appraisals are more formal and follow standardized valuation methods.

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