A comparative market analysis, commonly called a CMA, is a report prepared by a real estate agent that estimates a property's current market value by examining the sale prices of similar homes that have recently sold, are currently listed, or have expired in the same area. In Toronto, agents build CMAs using sold data from the Toronto Regional Real Estate Board's MLS system, and both buyers and sellers rely on them to make informed pricing decisions.
The foundation of a CMA is the selection of comparable properties, known as 'comps.' An agent will typically identify at least three to six properties that closely match the subject home in key characteristics: location, property type, square footage, number of bedrooms and bathrooms, age, and condition. Ideally, these comps will have sold within the past three to six months and be located as close to the subject property as possible. In a city like Toronto, where pricing can shift significantly from one block to the next, proximity matters.
Once comps are identified, the agent adjusts their sale prices to account for differences. If a comparable property had one fewer bathroom than the home being evaluated, its sale price would be adjusted upward to estimate what it might have sold for with that additional bathroom. The same logic applies to factors like parking, lot size, renovations, floor level in a condo building, and exposure. These adjustments produce a narrowed price range that reflects what a buyer would likely pay for the subject property in the current market.
A CMA is not the same as an appraisal. An appraisal is conducted by a licensed appraiser, typically at the request of a mortgage lender, and follows standardized regulatory procedures. A CMA, by contrast, is prepared by a real estate agent and is not a formal valuation. However, appraisers often use a similar direct comparison approach, so a well-prepared CMA and a subsequent appraisal will frequently arrive at figures in the same range.
For sellers, a CMA helps set a realistic listing price grounded in recent market activity rather than speculation. For buyers, it provides a framework to assess whether an asking price is fair and to decide how much to offer. In Toronto's shifting market conditions, a CMA is typically considered current for 30 to 90 days before it should be refreshed with new data.