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?▾
Is a CMA the same as an appraisal?▾
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