Comparative Market Analysis: How a CMA Prices a Philadelphia Home

If you are thinking about selling, the first real question is what the house will actually sell for, not what you hope it is worth. A comparative market analysis is how an agent answers that from real closed sales on your blocks, and it is worth knowing how one is built so you can tell a good one from a number picked to win your listing.

What is a comparative market analysis?

A comparative market analysis, or CMA, is an agent's estimate of what a home will likely sell for, based on recently closed sales of similar homes nearby. The agent selects comparable sales, adjusts each one for differences from your home, and turns the results into a price range used to set a list price or weigh an offer.

The word that matters is closed. Active listings tell you what other sellers are asking. Closed sales tell you what buyers actually paid. A good CMA is built on closed sales first, then uses active and pending listings to show which way the market is moving and who you will be competing against.

A CMA is not a formal valuation, and it is not an automated estimate. Even Zillow says on its own Zestimate page that the Zestimate is not an appraisal, and it suggests homeowners request a comparative market analysis from a real estate professional. More on that in our article on how accurate the Zestimate is.

How does a realtor do a comparative market analysis?

A realtor does a CMA by pulling recent closed sales from the MLS that match your home's location, type, size, and condition, then adjusting each sale up or down for the differences. They review pending and active listings for direction, weigh the strongest comps most heavily, and land on a price range with every comp shown.

Here is the process I follow when I build one:

1. Walk the house. Square footage on the tax record does not tell me that your kitchen was redone or that the basement takes water. I came from the construction side, so I look closely at condition and what a buyer's inspector is going to flag.
2. Pull closed sales from Bright MLS. I start with sales on your block and the blocks around it, usually from the last 90 days, and widen the window or the area only when there are not enough true comparables.
3. Cut the ones that do not compare. A gut rehab is not a comp for a dated original. A corner end unit is not a comp for an interior row.
4. Adjust for the differences. Extra bedroom, extra bath, parking, finished basement, outdoor space, condition. Each one moves the comp's price up or down to estimate what it would have sold for if it were your house.
5. Check pending and active listings. Pendings show where prices are heading before they close. Actives show your competition.
6. Give a range, with the addresses. You should be able to look up every comp yourself and check my work.

What goes into a CMA?

A CMA includes the comparable sales used, their sale prices and dates, the adjustments made to each, pending and active competition, and a final suggested price range. A strong one also shows days on market and the gap between list and sale price, so you can see how buyers in your segment are actually behaving.

Worked example (hypothetical numbers). Say you own a three bedroom rowhome in Fishtown with original finishes. Three comparable closed sales come in like this:

The adjusted prices cluster between $377,000 and $387,000, so a reasonable range to discuss would be about $375,000 to $390,000. If Comp B is the closest match on layout and condition, I would weight it more heavily. These adjustment amounts are illustrations only. Real adjustments depend on what buyers in that specific market pay for each feature.

What is the difference between a CMA and an appraisal?

A CMA is a free estimate from a real estate agent, used to price a home or evaluate an offer. An appraisal is a formal opinion of value from a licensed appraiser, usually ordered by the buyer's lender. The CFPB describes an appraisal as a written document that shows an opinion of how much a property is worth.

The rules on the appraisal side are stricter. Fannie Mae's Selling Guide, in its comparable sales section dated June 4, 2025, requires a minimum of three closed comparables in the sales comparison approach and says comps that closed within the last 12 months should be used, with older sales allowed when the appraiser explains why. Lender guidelines get updated, so treat that as the current standard, not a permanent one.

Buyers also have a right to see the result. According to the CFPB, lenders must give you a free copy of the appraisal on a first-lien mortgage application promptly after it is completed, and no later than three days before your loan closes.

Why does the CMA matter if the buyer's appraisal decides the loan?

The CMA matters because the appraiser looks at the same kind of closed sales. If your list price is supported by real comps, the appraisal has a much better chance of coming in at the contract price. If the house is priced off hope, the buyer's appraisal can come in low and reopen the negotiation late in the deal.

An overpriced listing does not just sell later. It usually sells later for less, after price drops tell every buyer something is off. A CMA built on closed sales is the cheapest insurance against that. I cannot promise any sale price or appraisal result, but I can make sure the number you list at is one the comps can defend.

How accurate is a comparative market analysis?

A comparative market analysis is only as accurate as the comps and the judgment behind it. With several recent, truly similar closed sales nearby, a CMA can be a reliable guide. With few sales, unusual properties, or a fast-moving market, the range gets wider. Ask to see every comp and every adjustment so you can judge it yourself.

A few things that throw a CMA off:

• Using list prices instead of sale prices.
• Comps from across a dividing line like a major avenue, a rail line, or a different housing stock, where buyers price homes differently.
• Ignoring condition. In Philadelphia rowhomes, condition swings value more than almost anything else. Two houses with the same square footage on the same block can sell tens of thousands of dollars apart.
• A number picked to win the listing. If one agent's CMA comes in far above the others with no closed sales to back it up, ask where the number came from.

How do I get a CMA on my Philadelphia home?

Ask a local agent who works your area and can pull closed sales from Bright MLS. My home valuation is a real comparative market analysis, not an automated estimate. I send a range with the addresses I used, plus a seller net sheet showing what you walk away with after transfer tax and fees.

That net sheet matters because the sale price is not what you keep. In Philadelphia, your share of the transfer tax alone is a meaningful number. If you are weighing a quick sale, I can also put a cash offer next to the listing number so you can compare the real net of each.

The bottom line on a comparative market analysis

A comparative market analysis prices your home from what similar homes nearby actually sold for, adjusted for the differences. It is not an appraisal, and it is only as good as the comps behind it. Ask for every address, check the adjustments, and price where the closed sales point. The first conversation with me is about twenty minutes and free.