comparative-market-analysis

Comparative Market Analysis Skill

A CMA prices a home the way the market actually values it: against recent, similar, nearby sales — adjusted for

the differences. This skill structures that analysis so the number is defensible: the comparables chosen and

why, the adjustments made, the resulting range, and a pricing recommendation tied to the seller's goal.

> Note: this is a pricing-analysis aid for a real-estate professional, **not a formal appraisal or

> financial/legal advice**. It works from the comparables and figures you provide; valuation depends on local

> market data and professional judgement. Never invent comp sales or prices — use the data given or mark it to source.

Working from a brief

Given a subject property and a few comps, build the CMA anyway — structure the analysis, apply reasoned

adjustments, and give a range, marking any figure to source (confirm with MLS/records). Where comps are

missing, explain what to pull rather than inventing sales. Never fabricate comparable prices.

Required Inputs

Ask for these only if they aren't already provided (else mark to source):

• Subject property — address/area, type, beds/baths, size, lot, condition, and notable features.
• Comparables — recent nearby sales (and ideally active/pending) with their key attributes and sale prices.
• Market context — local trend (rising/flat/falling), inventory, and days-on-market if known.
• Goal & timeline — sell fast vs. maximise price, and any deadline.

Output Format

CMA: [subject property]

1. Subject property — the key attributes summarised.

2. Comparables — a table of the comps used, with adjustments toward the subject:

| Comp | Sold price | Date | Beds/Baths | Size | Key differences | Adjustment | Adjusted price |

|---|---|---|---|---|---|---|---|

Explain the adjustment logic (e.g. +/- for size, condition, extra bath, garage, view) — directionally and why.

3. Market context — the trend, inventory, and absorption, and what it means for pricing now.

4. Estimated value range — a supported range from the adjusted comps (not a single false-precision number), with the most-likely figure.

5. Pricing recommendation — a list price tied to the goal (e.g. price at market for speed, slightly under for multiple offers, at the top of range to test) — with the trade-off of each.

6. Caveats — data to confirm, and a note that a formal appraisal/agent review is needed.

Quality Checks

• [ ] Comps are genuinely comparable (recent, nearby, similar) — or the limitation is flagged
• [ ] Adjustments are explained directionally with rationale, not hand-waved
• [ ] The output is a supported range, not a single false-precision number
• [ ] The pricing recommendation ties to the seller's goal and states the trade-off
• [ ] Market trend/inventory context informs the recommendation
• [ ] No comp sales or prices are invented; figures to source are flagged

Anti-Patterns

• [ ] Do not invent comparable sales or prices — use provided data or say what to pull
• [ ] Do not give a single exact value with false precision — give a supported range
• [ ] Do not skip adjustments — raw comp prices ignore the differences that matter
• [ ] Do not ignore the market trend — a stale comp in a moving market misleads
• [ ] Do not present this as a formal appraisal — flag for professional review

Based On

Real-estate valuation practice — comparable-sales analysis with feature adjustments, market-context weighting, and goal-aligned pricing (CMA, not a formal appraisal).