

Adjusting a Comparitive Market Analysis relies on basic math and research skills

Adjusting a Comparitive Market Analysis relies on basic math and research skills

The key to selling a home is knowing how to price it so it will sell quickly and for the highest possible price. Too high and it will languish on the market. Too low and the sellers will walk away with less money than they could have. The most common way to determine the value is to prepare a comparative market analysis, or CMA. Unless there are several nearby homes that have sold recently with the same square footage, lot size, age, condition and amenities, you will need to adjust the values of the comparable properties to determine the value of the subject property.


List all of the important information about the home. This typically includes things like finished square footage of the home, lot size, number of bedrooms and bathrooms, age, condition, features such as parking and basements, and amenities like pools and fireplaces. List these items in either a printed or online CMA form or spreadsheet.


Research nearby homes that have sold recently. It is best to stay within the same neighborhood or subdivision but, if not enough homes have sold in the past six months, or if you live in a rural area, you may need to expand the search. Most real estate agents use the MLS or Multiple Listing Service to compare sales prices and home features, but for-sale-by-owners or agents who are not members of their local listing service will have to rely on sources like or to compare properties and sales prices.


Choose three or four homes that are most similar to your subject home. List them on the spreadsheet and take note of the differences between these homes, which are the comparables, and the subject property.


Adjust the prices of the comparable homes, adding value where the home is lacking in features that your home has and subtracting value where it has features that yours doesn't. Real estate agents typically have a list of adjustment values that appraisers and other professionals use, or an MLS program that enters the adjustment values automatically. The accuracy of your market analysis will depend on the accuracy of these numbers.


Determine a price range for the subject property. Looking at the final values of the comparable properties, after you have adjusted them, will give you a range of values for the listing price. If the properties are very similar, you can average them for a target price, or choose the lower end for a quicker sale or higher end for a larger profit. If there is some difference between them, you can give more weight to the one most similar to your home.

Things You Will Need

  • Computer


  • If you know about them, adjust for special circumstances like sales between friends and relatives, foreclosures, and divorce sales that may affect sale prices.


  • Keep in mind that a Comparative Market Analysis is not an exact science and that the price is based on what has already sold. Major recent changes, like zoning announcements or school redistricting, may impact the final value.
  • Always adjust the comparables, not the subject property.

About the Author

Raine Butler has been a writer since 2001 and has been published in a wide range of blogs, websites, magazines and other media. Butler's interests include real estate, decorating, home improvement, web design and technology, attachment parenting, homesteading, gardening, emergency preparedness, fitness, animal welfare, DIY and crafting.

Photo Credits

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