What Is a Comparative Market Analysis (CMA) in Illinois?
What Is a Comparative Market Analysis?
A Comparative Market Analysis (CMA) is a detailed report prepared by a real estate agent that estimates a property’s market value by comparing it to recently sold homes with similar characteristics in the same area. It’s the primary tool agents use to help sellers price their homes and help buyers determine what to offer.
A CMA is not an appraisal — it’s not conducted by a licensed appraiser and has no official legal standing in mortgage lending. But a well-prepared CMA is the single most useful pricing tool in the day-to-day Illinois real estate market.
What Goes Into a CMA?
Comparable Sales (“Comps”)
The foundation of any CMA is the comparable sales — homes in the same area that have recently sold. Good comps share key characteristics with the subject property:
- Location: Same neighborhood, subdivision, or school district; ideally within 0.5–1 mile
- Size: Within 10%–15% of the subject property’s square footage
- Bedrooms/bathrooms: Same or similar configuration
- Style: Ranch vs. two-story matters; split-levels are compared to split-levels
- Age: Homes built within 10–15 years of each other
- Recency: Sold within the last 90 days (6 months maximum in slow markets)
Active Listings
Current listings show you what competing properties are priced at — your competition for buyer attention. Active listings establish the ceiling: if comparable homes are listing at $375,000 and not selling, pricing above that is risky. Active listings don’t tell you what homes are actually worth — only what sellers are asking.
Pending/Under Contract Sales
Homes under contract reveal the most current market sentiment — these are transactions happening right now, not 90 days ago. Pending prices aren’t public yet, but the fact that homes are going under contract at or above list price signals a strong market; contracts significantly below list signal the opposite.
Expired and Withdrawn Listings
Listings that expired without selling establish the ceiling — the price point the market rejected. If three similar homes listed at $400,000 and all expired without selling, pricing at $400,000 is a warning sign regardless of how much the seller wants that number.
How Agents Adjust for Differences Between Comps
No two homes are identical. Agents make adjustments for differences between comps and the subject property:
- Garage: A 3-car garage vs. 2-car garage might warrant a $5,000–$15,000 adjustment in the South Suburbs
- Basement: Finished vs. unfinished; walkout vs. standard
- Updates: Kitchen renovation, bathroom remodel, new HVAC — each has a market value contribution
- Lot size: Larger lots command premiums in communities like Homer Glen and Frankfort; less so in dense condo markets
- Location within neighborhood: Backing a busy road, backing open space, cul-de-sac location, proximity to amenities
These adjustments are part art, part science — an experienced agent who knows the local market makes better adjustments than one who’s guessing at values.
CMA for Sellers: Setting the Right List Price
The list price decision is the most important one a seller makes. A CMA-driven price that reflects actual market data gives sellers the best chance of:
- Attracting maximum buyer attention in the first 14–21 days (when homes generate the most traffic)
- Generating multiple offers in a competitive market
- Passing the lender’s appraisal when a buyer uses financing
Overpricing is the single most common seller mistake — and the CMA is the tool that prevents it. An agent who tells you your home is worth more than the comps support is either wrong or trying to win the listing with flattery.
CMA for Buyers: Determining What to Offer
Buyers use CMAs to answer: “Is this home priced fairly, and what should I offer?”
A buyer’s agent runs comps before you write an offer. The CMA reveals:
- Whether the list price is at, below, or above market
- How much competition to expect (if similar homes are selling fast, offer aggressively)
- The ceiling the appraisal is likely to support (critical if you’re offering above list)
- How much room exists for negotiation (if the home is priced above comps, negotiate; if at market, don’t lowball)
CMA vs. Appraisal: Key Differences
| Feature | CMA | Appraisal |
|---|---|---|
| Who prepares it | Licensed real estate agent | State-certified appraiser |
| Cost | Free (from your agent) | $400–$600 (buyer pays at closing) |
| Purpose | Pricing strategy; offer guidance | Lender’s collateral valuation |
| Legally binding? | No | Used by lender to set loan amount |
| Recency of comps | Flexible (agent judgment) | Typically last 90 days (strict) |
| Adjustment method | Agent judgment + market knowledge | Structured adjustment grids |
The Krembo Group provides CMAs for free to all seller and buyer clients. Contact us for a market analysis on your South Suburbs home or a target property you’re considering.
Frequently Asked Questions: Comparative Market Analysis in Illinois
