A comparative market analysis (CMA) estimates what your home is likely to sell for by comparing it with similar nearby homes that recently sold, are under contract or are for sale now, then adjusting for the differences. Two agents can look at the same house and land on different numbers because they pick different comparables and weigh the differences differently, and an online estimate can differ again because it never walked through your house.
Here is how a CMA is put together, step by step, so you can read one critically before you set a list price on a home in the City of Richmond, Henrico County or Chesterfield County.
What a CMA is, and what it is not
A CMA is a pricing opinion from a real estate agent. It is not an appraisal. Virginia law draws that line clearly. Under Code of Virginia Sec. 54.1-2010, a licensed broker or salesperson may provide a valuation or analysis of real estate without an appraiser’s license, but may not call it an appraisal, and it cannot be used in place of an appraisal by a licensed appraiser.
That matters for sellers in two ways. A CMA helps you choose a list price. Your buyer’s lender will usually still order its own appraisal, and that appraiser does not have to agree with any agent’s number. Our guide to preparing your Richmond home for the buyer’s appraisal covers that second step.
Step one: choose the comparables
Comparables, or comps, are the heart of a CMA. A good comp is a home a buyer would realistically consider instead of yours: similar location, size, age, style, lot and condition. A CMA usually sorts comps into three groups, and each tells you something different.
- Sold (closed) homes show what buyers actually paid. These carry the most weight.
- Pending homes are under contract but not closed. They show where the market is heading, but the final price is usually not public until closing.
- Active listings are your competition. They show what sellers are asking, not what buyers will pay.
Appraisers work under similar logic. The Fannie Mae Selling Guide section on comparable sales calls for at least three closed comparables, says sales that closed within the last 12 months should be used, and treats current listings and contracts as supporting data that do not count toward those three. It also asks appraisers to draw comps from the subject’s own market area when possible. A CMA that leans mostly on active listings, or reaches into a different market area while closer sales exist, deserves a second look.
Location is where many disagreements start. A comp a mile away with the same housing type and a similar setting may be fine. A comp across a major road, in a different subdivision or in a different locality may not be. For a house in the Museum District, sales in the Museum District usually say more than sales elsewhere in the city. For a house in Midlothian, comps from inside the same subdivision usually beat comps from across the county.
Step two: adjust for the differences
No comp is identical to your house, so each one gets adjusted. The rule is simple: adjust the comp toward your home. If a comp has something your home lacks, subtract its value from the comp’s price. If your home has something the comp lacks, add it.
Illustration only. These are hypothetical round numbers, not market data or real sales.
| Item | Hypothetical comp |
|---|---|
| Comp sale price | $400,000 |
| Comp has a finished basement, your home does not | minus $15,000 |
| Your home has a second full bath, the comp does not | plus $10,000 |
| Comp sold eight months ago, prices in the area moved up since | plus $6,000 |
| Adjusted comp price ($400,000 – $15,000 + $10,000 + $6,000) | $401,000 |
Repeat that for every comp. If three adjusted comps land at $392,000, $401,000 and $408,000, the CMA points to a range of roughly $392,000 to $408,000, not a single magic number.
Typical adjustments cover finished square footage, bedrooms and baths, garage and parking, lot size, condition and updates, and the date of sale. The Fannie Mae guide also names flood zone as a factor appraisers must account for. The size of each adjustment is a judgment call based on how buyers in that market have paid for the feature, which is exactly why two agents can disagree.
Step three: reconcile into a price
An agent then weighs the adjusted comps. The closest, most recent, least-adjusted sales get the most weight. A comp that needed large adjustments in several directions is a weaker signal. Pending and active listings then test the result: if your adjusted range sits well above every active listing that buyers are skipping, the market is telling you something.
A list price is a strategy decision built on that range, not the range itself. Whether to price at the middle, the low end or the high end depends on how much time you have and how buyers are behaving. If the price turns out to be wrong after a few weeks, read when to cut the price on a Richmond listing and by how much.
Why two agents land on different numbers
- Different comps. One agent uses three sales inside your subdivision; another adds two larger homes from the next neighborhood. The answer moves.
- Different adjustments. In a hypothetical example, one agent values a renovated kitchen at $10,000 and another at $25,000. Neither has a published rule to follow.
- Different reads on condition. Listing photos rarely show a tired roof or an original HVAC system. An agent who walked through each comp may adjust differently from one who did not.
- Different time frames. A CMA built on sales from twelve months ago can land in a different place from one built on the last three months.
- Different motives. A high number can win a listing. Ask every agent to show the comps and adjustments behind their price, and be wary of any number without them.
Start with a number built from real sales
Get your instant home value, built from recent sales near you. Use it as a starting point when you compare agents’ pricing.
Why online estimates and assessments differ
Automated online estimates rely on public records and statistical models. They cannot see a new kitchen, a leaking basement or a view of a parking lot. Your local assessment is a different figure again, set by the City or county for tax purposes as of a specific date.
When localities review an assessment, they look for sales evidence. Henrico’s 2026 assessment appeal application describes evidence such as sales from the previous calendar year, photographs and contractor repair estimates. That is CMA-style evidence, and none of it is a website estimate. If you think your assessment is off, read our guide on how to appeal a property assessment in Richmond, Chesterfield and Henrico.
When the appraisal comes in below the contract price
Even a careful CMA cannot guarantee the appraisal. If the buyer’s appraisal comes in low, the comps and adjustments behind your price become your best evidence. A buyer’s lender may consider a reconsideration of value with better comps, explained in our guide to reconsideration of value after a low appraisal.
To see what has sold recently, browse our recently sold properties, and when you are ready to talk strategy, see how we work with sellers.
Frequently asked questions
How many comparables should a CMA include?
There is no legal minimum for a CMA. As a benchmark, the Fannie Mae Selling Guide asks appraisers to report at least three closed sales. A CMA with three to six well-chosen sales, plus pending and active listings for context, is easier to trust than one padded with distant or dated sales.
Is a CMA free?
Agents often prepare one when they are competing to list a home, but practices vary. Ask up front whether there is a cost and what the analysis will include, and ask to see the comps and adjustments, not just the final number.
Can I use a CMA to refinance or settle an estate?
Not in place of an appraisal. Virginia law says a licensee’s valuation cannot be called an appraisal or used instead of one by a licensed appraiser. Lenders, courts and tax filings that call for an appraisal need a licensed appraiser.
Should my home’s upgrades be priced at what I paid for them?
Usually not. An adjustment reflects what buyers in your market pay for a feature, which is often less than its cost. Keep receipts and permits anyway, since they help an agent or appraiser confirm the work was done.
How often should a CMA be updated while my home is listed?
Whenever the market around you changes, for example when a nearby comp closes, goes under contract or cuts its price. A pricing opinion built before your listing went live can be out of date within weeks if new sales come in.
Why does my assessment differ from what my home could sell for?
The assessment is a tax value set as of a specific date by the locality, using mass appraisal of many properties at once. A CMA looks at your specific house today against the closest recent sales, so the two can differ in either direction.
See where your home starts
Get your instant home value, built from recent sales near you. Then hold every pricing opinion you hear to the same standard: show the comps and the adjustments.
