Where Every Big Bank Stands On Wednesday's Interest Rate Announcement

Comparative Market Analysis (CMA)

Discover how a Comparative Market Analysis (CMA) helps determine a property’s value in Canadian real estate and supports smart pricing and negotiations.

Comparative Market Analysis (CMA)

May 22, 2025


What is Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is a report prepared by a real estate professional that estimates a property’s market value based on recent sales of similar homes in the area.

Why Comparative Market Analysis (CMA) Matters in Real Estate

In Canadian real estate, a CMA helps sellers price their homes competitively and assists buyers in making informed offers. It’s based on ‘comps’—comparable properties that have recently sold or are currently listed.

A typical CMA evaluates:
- Recently sold homes (typically within 3–6 months)
- Active listings (current asking prices)
- Expired listings (homes that didn’t sell)
- Property features (size, age, condition, location)

CMAs are not formal appraisals, but they provide a data-driven pricing strategy. REALTORS® use their expertise and local market knowledge to interpret the data and make pricing recommendations.

For sellers, a CMA can help avoid overpricing or underpricing. For buyers, it can reveal whether a home is fairly valued. CMAs are especially important in competitive or fast-moving markets where price accuracy can impact sale outcomes.

A well-prepared CMA builds confidence for all parties in a transaction and supports stronger negotiations and outcomes.

Example of Comparative Market Analysis (CMA) in Action

A REALTOR® prepares a CMA for a seller showing that three similar homes in the area sold for $850,000–$875,000. They recommend listing the property at $860,000.

Key Takeaways

  • Estimates property value based on local sales data.
  • Used by sellers to set prices and by buyers to evaluate offers.
  • Compares recent and similar property sales.
  • Created by a licensed REALTOR®.
  • Not a formal appraisal, but a strategic pricing tool.

Related Terms

  • Market Value
  • Appraisal
  • Listing Price
  • Fair Market Value
  • Pricing Strategy

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

More For You

Where Every Big Bank Stands On Wednesday's Interest Rate Announcement

bank of canada interest rate
Bank of Canada/X

This Wednesday, September 17 will bring another Bank of Canada (BoC) interest rate announcement, and the third-last of the year. The country is going into this decision with a policy rate of 2.75%, held steady at this level since March of this year.

Although there wasn’t much mystery leading up to the Bank’s last announcement in late July — it culminated in a third-straight hold, as anticipated across the board by economists with Canada’s ‘Big Five’ banks — there’s more room for debate this time around.

Keep ReadingShow less
Where Every Big Bank Stands On Wednesday's Interest Rate Announcement

Picturesque In Picton: Don't Miss This Restored Queen Anne Gem

Picturesque In Picton: Don't Miss This Restored Queen Anne Gem

In the heart of Picton, just steps from Main Street, an iconic heritage home has been reimagined for modern living — without sacrificing any of its historic soul.

Known as the Bigg/Strong House and dating back to 1900, this Queen Anne beauty at 29 Queen Street is a rare blend of architectural character and contemporary sophistication.

Keep ReadingShow less

Montreal, Ottawa Lead National Home Sales To Best August Since 2021

Montreal, Ottawa Lead National Home Sales To Best August Since 2021
Shutterstock

August brought a fifth-straight gain in national home selling activity, with the Canadian Real Estate Association (CREA) reporting a 1.1% bump in transactions in its latest statistics package, released Monday morning. Although a 1% uptick is nothing to write home about, it marks “the best month of August for sales since 2021” and contributes to a cumulative 12.5% rise since March, CREA said.

While recent months’ gains were “led overwhelmingly” by the Greater Toronto Area, according to the national association, August’s activity was driven by sales in Montreal and Ottawa — and to a lesser degree, Greater Vancouver.

Keep ReadingShow less

Ana Bailão Named Inaugural CEO Of Build Canada Homes

Ana Bailão will be serving as the inaugural CEO of Build Canada Homes.

Ana Bailão will be serving as the inaugural CEO of Build Canada Homes. / Government of Canada

[This is Part Two of a two-part series about the launch of Build Canada Homes, the Government of Canada's new housing entity. Part One is about what the new entity will do and its first round of investments.]

On Sunday, Prime Minister Mark Carney announced the launch of Build Canada Homes, the Government of Canada's new housing entity, and its inaugural Chief Executive Officer will likely be a familiar name to Torontonians: Ana Bailão.

Keep ReadingShow less

Build Canada Homes Launches With $13B In Funding And First Round Of Projects

​Prime Minister Mark Carney and Minister of Housing Gregor Robertson announcing the launch of Build Canada Homes on Sunday, September 14.

Prime Minister Mark Carney and Minister of Housing Gregor Robertson announcing the launch of Build Canada Homes on Sunday, September 14. / Mark Carney, Twitter

[This is Part One of a two-part series on the launch of Build Canada Homes, the Government of Canada's new housing entity. Part Two is about Build Canada Homes CEO Ana Bailão.]

On Sunday, Prime Minister Mark Carney announced the launch of Build Canada Homes, a new federal housing agency that doubles as the new government's flagship response to the housing crisis.

Keep ReadingShow less
Build Canada Homes Launches With $13B In Funding And First Round Of Projects

Greatwise Seeks 38-Storey Flatiron On Infill Site Near Sherbourne Station

Greatwise Seeks 38-Storey Flatiron On Infill Site Near Sherbourne Station
77 Howard Street/Arcadis

A 38-storey infill development could soon join an existing 24-storey apartment building in Toronto's North St. James Town neighbourhood. The tower would be mixed-use in nature and would deliver a new public park and over 400 condos units within walking distance of higher-order transit.

Plans for the development were filed by Toronto-based developer Greatwise Developments in late-August and support a Zoning By-law Amendment application to increase the height and density allowances on the site. Currently, the lands are occupied by a residential tower in the southern portion of the site, associated parking, and green space in the north fronting onto Howard Street.

Keep ReadingShow less

Receiver Launches Sale For 55-Acre Future Community Site Near Allandale GO

Receiver Launches Sale For 55-Acre Future Community Site Near Allandale GO

KSV Advisory

A landmark stretch of vacant land at 175–199 Essa Road and 50 Wood Street has come to market under a court-supervised process, presenting a rare chance to shape a large, mixed-use community at Barrie's western gateway.

The property spans approximately 55 acres in a high-profile location bordered by Essa Road to the south, Anne Street to the east, the rail tracks to the north, and Highway 400 to the west. The Barrie Curling Club is located at the southeast edge of the property.

Keep ReadingShow less

Meet The Agent: Jenny Simon and Shane Little, Sage Real Estate

Jenny Simon and Shane Little of Sage Real Estate

Welcome to Meet the Agent, an ongoing series profiling real estate agents from across Canada. With more than 150,000 agents, brokers, and salespeople working in 75 different boards and associations across the country, we thought it was about time they had a place to properly introduce themselves.

If you or someone you know deserves the same chance, email agents@storeys.com to apply.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved