A CMA (also known as Comparable Market Analysis) is a comparison or estimate of the value of a property based on an analysis of recently sold homes that is substantially equivalent to each other in terms of selling price, location, style and amenities in a specific location or development.

A Comparable market analysis normally contains Active properties for sale, Pending, Sold, and off-market/withdrawn/canceled properties.

Active properties are homes currently for sale. These properties only indicate your competition for buyers. They are not indicative of market value because sellers can ask whatever they want for their home. In a CMA, active properties only matter if there are numerous comparable houses for sale well below your target price. If those low priced comparables properties sell, then their sales will reduce your comparable price.

Pending sale homes are previously active properties that are now under contract. These properties have not yet closed, therefore they are not yet a comparable sales. Unless the seller or agent is willing to share information about the pending sale price (and many are not) you will not know the pending sale price until the transaction closes and becomes public record. The valuable information that pensing properties offer, is Day on Market (DOM). This tells you how long the property was actively for sale before entering pending sale status.

Sold Homes that have closed within the past six months are used for a comparable market analysis. These are the properties an appraiser will use when appraising your home for the buyer, along with the pending sales (which will likely have closed by the time your home is sold). Look long and hard at the comparable sales because those are your market value.

Withdrawn and Canceled properties only provide an indication of properties that were not successfully closed. This could be for a variety of reasons (property need repairs, over priced, bad marketing or agent).

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