How Do I Create a Real Estate Market Analysis?

By Sherry Davis Zander
    Determine a home's value with a comparative market analysis, or CMA.


    Don’t pay more than a home is worth in the current real estate market. An accurate real estate market analysis--also called a comparative market analysis, or CMA--could save you thousands on your next home purchase. It could also result in a significant gain if you're selling a home. Determine a home’s value by following general CMA guidelines to ensure you reap the greatest rewards from the sale or purchase of your next home.

    Step 1

    Record the addresses of five houses sold and five houses for sale in the immediate neighborhood. Include houses only within the same subdivision or within a half-mile radius. Note houses sold only within the previous three months. List the houses sold on a separate sheet of paper from the houses currently on the market.

    Step 2

    Insert separate column headings for the number of bedrooms, bathrooms, garage stalls, amenities, basement type and any additions. The details for the column fields will be inserted in the next step. Amenities may include granite countertops, a fireplace or specialized tile such as travertine. Additions may include a sun room, a swimming pool or a recreation room.

    Step 3

    Call the local assessor’s office for information on the sold houses. The assessed value is often the sales price of the home. Ask for the assessed value and details of each house noted. If a house has a deck, ask how large it is and note it. Write down the square footage and the number of bedrooms, bathrooms and garage parking stalls, whether the house has a basement or crawlspace, and if the home has any amenities or bonus areas. For example, make note of granite countertops, a fireplace, a sun room, a recreation room, a swimming pool, a hot tub, a finished basement and other amenities or additions. Also ask for the year the house was built and, if available, the years the roof, the central air-conditioning and the heating were installed or replaced.

    Step 4

    List all comparable homes, including prices and details. For a more accurate CMA, use a minimum of three sold and three for-sale homes, and include equal amounts of both. Comparable homes include all houses with similar square footage, number of bedrooms and other details.

    Step 5

    Add the prices of all comparable homes. Divide that number by the number of houses used in the calculation. This is the estimated market value of your home. Another more accurate way to arrive at the market value is to divide each home's price by the square footage, which provides the price-per-square-foot for each. Add them all together and divide by the number of houses to get an average price-per-square-foot. This is the ballpark price of the home you are selling or buying.


    • Leave out houses with far more or far less square footage, and include only homes of the same style, such as single-family dwellings versus condominiums. If you cannot obtain adequate information from a local assessor, contact a local real estate agent who may be willing to provide more details.


    • If you are not confident in completing a CMA on your own, contact a licensed real estate agent to do it for you.

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