Listing Price Estimator
CMA-lite: estimate listing price using comparable sales adjustments.
How CMAs and Listing Price Estimates Work
A Comparative Market Analysis (CMA) is the standard method real estate agents use to estimate a property's market value. The goal is to find recently sold homes that are as similar as possible to the subject property, then adjust their sale prices up or down to account for differences.
The Adjustment Process
Each adjustment answers the question: "Would a buyer pay more or less for the subject property because it has this feature, compared to the comp?" If the subject has a garage and the comp doesn't, the comp's sale price is adjusted upward — because a buyer would have paid more if that comp also had a garage. Adjustments should be grounded in actual market data when possible; the defaults here are illustrative starting points.
Choosing Good Comps
The best comps are sold within the last 90 days, within half a mile of the subject, and within 10–15% of its square footage. Properties in the same subdivision are ideal. Avoid using active listings or pending sales — only closed sales represent actual market values.
Time Adjustments
In appreciating markets, older comps understate current value. A 0.5% monthly appreciation rate is common in normal markets; in hot markets it may be 1–2%. In declining markets, the adjustment is negative. Always research local appreciation trends before applying a time adjustment.
Listing Price vs. Market Value
The estimated value is your target market price. The listing price is a strategic decision: in low-inventory markets, pricing slightly below the estimate can trigger multiple offers and drive the final price above estimate. In buyer's markets, pricing precisely at or just below the estimate signals realistic expectations and reduces days on market.