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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

Land Banking

Gentrification is the process by which a traditionally lower-income neighbourhood undergoes revitalization and attracts higher-income residents,. more

Land Assembly

Land assembly is the process of acquiring and consolidating multiple adjacent parcels of land under one ownership, typically for redevelopment or. more

Joint Venture

A joint venture in real estate is a partnership between two or more parties to develop, own, or operate a property or project, sharing risks, costs,. more

Infill Development

Infill development is the process of building new housing, commercial buildings, or amenities on vacant or underutilized land within existing urban areas.. more

Inclusionary Zoning

Inclusionary zoning is a municipal planning tool that requires or incentivizes developers to include a percentage of affordable housing units in new. more

Impact Fees

Impact fees are charges levied by municipalities on new developments to offset the cost of additional public infrastructure and services required by. more

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