Want to estimate a property's value accurately in 2025? A Comparative Market Analysis (CMA) helps you determine fair market value by comparing similar properties, analyzing market trends, and using reliable data. Here's how to do it step-by-step:
- 1. Collect Property Details: Size, layout, condition, updates, and location specifics.
- 2. Find Comparable Properties: Focus on recently sold homes (3–6 months) in the same area with similar size, age, and style.
- 3. Analyze Market Trends: Review price changes, inventory levels, and seasonal patterns. Adjust for differences like features and condition.
Tools like Stantem streamline the process with verified, county-level data, customizable analysis, and automated updates. This ensures your CMA is precise and up-to-date.
Quick Tip:
- Use recent sales for accuracy.
- Verify data sources to avoid errors.
- Factor in market shifts and unique property features.
By following these steps and leveraging tools effectively, you can confidently determine property values and stay ahead in the real estate market.
How to Run a Comparative Market Analysis (CMA) for Real Estate
Step-by-Step Process for Conducting a CMA
Creating a Comparative Market Analysis (CMA) requires precision and reliable data. Here's a clear breakdown of the process to help you achieve accurate results in 2025.
1. Gather Property Details
Start by collecting all the essential information about the property. This includes its size, layout, condition, recent updates, and other location-specific details like proximity to schools or local amenities. Tools like Stantem can help you ensure the data is accurate and complete.
2. Identify Comparable Properties
Look for properties that have sold in the last 3 to 6 months and closely match the subject property. Focus on those within the same neighborhood or a 1-mile radius, and ensure they are similar in size (within 20%), age (within 5–10 years), style, and condition. Platforms like Stantem make it easier to find and verify this information.
3. Evaluate Market Trends and Determine Value
This step involves combining market insights with property comparisons to estimate the property's value:
- Review recent trends, such as price changes, inventory levels, average days on market, and seasonal influences, to understand the current market dynamics.
- Adjust for differences in size, features, condition, and location between the subject property and the comparable properties to calculate an accurate value estimate.
Stantem's verified data provides county-level precision, helping you make well-informed pricing decisions. By following these steps and using advanced tools, you can streamline the CMA process while maintaining accuracy.
How Stantem Supports the CMA Process
Stantem's platform improves the accuracy and speed of Comparative Market Analyses (CMAs) by providing certified, county-level data and advanced API tools. These features help real estate professionals complete CMAs more efficiently and with greater precision.
Benefits of Stantem's Data
Stantem offers several features that elevate CMA performance:
- Certified Data Accuracy: Access to county-certified data ensures reliable property valuations.
- Broad Market Coverage: Nationwide property data allows for thorough market comparisons.
- Streamlined Workflow: Tools like the GraphQL API and bulk export simplify data collection.
- Customizable Analysis: Flexible data requests make it easier to compare specific properties.
Incorporating Stantem Into Your CMA Process
Stantem's tools are designed to fit seamlessly into your CMA workflow. Use the GraphQL API to pull specific property details, bulk export for analyzing neighborhoods, and certified data to ensure accurate comparisons and evaluations. These features support:
- Quick verification of property details.
- In-depth analysis of market trends.
- Identification of comparable properties.
- Efficient value estimation processes.
The Standard plan, priced at $120/month, includes 30,000 API calls - perfect for most CMA needs. For larger operations, additional access options are available to ensure uninterrupted data analysis.
"Stantem's certified property data ensures that the information used in the CMA is accurate and trustworthy. This reduces the risk of errors and inconsistencies, which can lead to inaccurate valuations and poor decision-making."
Tips for Conducting a CMA in 2025
Even with tools like Stantem simplifying the Comparative Market Analysis (CMA) process, staying accurate means keeping up with market trends and ensuring data quality. Here's how to keep your CMAs sharp in 2025's fast-paced real estate market.
Staying Updated on Market Trends
In active markets, focus on using recent sales as comparables to maintain precision. Tools like Stantem's automated alerts make it easy to stay on top of key market indicators. Pay attention to:
- Price trends and shifts
- Local economic developments
- Changes within neighborhoods
With Stantem's saved searches, you can automate property data updates and receive alerts about market changes, ensuring your CMA data stays current and relevant.
Ensuring Data Accuracy
"A market analysis relies on the quality of data used. This means that if you choose your comps poorly... then the calculated value will not reflect the market." [1]
To ensure your data is reliable:
- Verify Data Sources: Use certified county-level data, such as what Stantem provides, to ensure accurate property valuations.
- Factor in Property Details: Consider unique features like renovations, amenities, location perks, or zoning updates.
- Monitor the Market: Keep an eye on economic changes and neighborhood trends to refine your analysis.
Here’s a quick reference table to help you organize and verify CMA data:
| Data Component | Verification Method | Update Frequency |
|---|---|---|
| Property Details | County Records | Every Transaction |
| Market Trends | Local Economic Data | Monthly |
| Comparable Sales | Recent Transactions | 3-6 Months |
| Neighborhood Data | Community Reports | Quarterly |
In rapidly shifting markets, prioritize key metrics like square footage, sale prices, and location details. Regular updates and thorough checks will help you deliver accurate, trustworthy property valuations to your clients.
Conclusion: Steps to a Successful CMA
A well-prepared CMA helps determine fair market value and guides real estate negotiations. It relies on accurate property details, recent comparable sales, and a solid understanding of market trends, using trusted data sources like Stantem.
To succeed with CMAs in 2025, focus on these three elements:
Property Information and Comparables
Gather detailed property data and choose comparable sales from the last 3-6 months that closely align with your subject property. Pay attention to factors like location, features, and market conditions to ensure the comparisons are relevant.
Market Integration
Factor in current market trends and local economic conditions by analyzing:
- Local market activity
- Recent comparable sales
- Neighborhood changes
- Economic trends
Digital Tools and Data Quality
Modern tools have improved CMA accuracy. Advanced platforms provide benefits like:
- Verified property data
- Access to extensive information
- Regular market updates
- Streamlined data collection
Stantem’s tools make CMA processes easier by offering verified property data, keeping your analysis accurate and up-to-date in a fast-changing market.
FAQs
What is included in a CMA report?
A CMA report (Comparative Market Analysis) pulls together essential details to help determine the market value of a property. It typically includes property specifics (like size, features, and condition), data on comparable sales from the past 3–6 months, and an overview of current market trends.
The report is usually broken down into three parts:
- Property and Market Analysis: This section combines details about the property being evaluated, recent comparable sales, active and pending listings, price changes, and neighborhood information. It sets the stage for understanding the property's value.
- Market Context: This part focuses on current market activity, such as active listings, recent sales, and pending transactions, to highlight trends that influence pricing. It also considers local economic conditions.
- Documentation and Support: Visual aids like maps, charts, and side-by-side comparisons are included to back up the valuation. These tools make the data clearer and the reasoning behind the valuation easier to follow.
Platforms like Stantem simplify the creation of CMA reports by using certified county-level data, ensuring that the analysis is both accurate and efficient. This tech-driven approach allows real estate professionals to deliver detailed, reliable reports with ease.
