What Is a CMA?

A CMA or Comparative Market Analysis is the best tool for determining your home’s market value.

What is a CMA

A CMA looks at your property and compares it directly to other homes that have recently sold, are currently listed, or have expired (not sold). Since no two properties are identical, we make adjustments for the differences between the sold properties and the one that is to be listed to determine a market value recommendation.


A home without a finished basement sold for $400,000 (the “comparable”). Your home is very comparable in all respects except it has a finished basement (the “subject home”). Let’s say that in your neighbourhood, homes with finished basements sell for around $20,000 more. Therefore, the adjusted price for the subject home in relation to the comparable home is $420,000.

Very important: The adjustments are not based on the actual cost to build/alter/change, rather, it is the value a buyer would put on this if they were to purchase the home (this could be higher or lower than the actual cost).


Market value = the price a buyer would pay for your property in an open market


Market Value is determined by the following:

1. Physical Characteristics of your home

2. Market Conditions


Market Value is not a number dictated by:

1. A Listing Real Estate Agent

2. A Seller

3. A City Tax Assessment

4. An Appraiser

A home is worth what a buyer is willing to pay.

“But wait, isn’t it possible for someone to fall in love with my property and pay more than the market value?”

It is highly unlikely. As your asking price climbs above the market value range, the pool of buyers shrinks considerably. It is unlikely they will select your property as there are other properties offering better value to the buyer.