iRealtee OS Glossary

Comparative Market Analysis

A comparative market analysis (CMA) benchmarks a property against comparable units on size, location, condition, tenure, and recent sale or asking prices to gui...

Comparative Market Analysis

Comparative Market Analysis is a pricing concept that estimates a property’s market value by comparing it with similar recent sales and active listings in the same area.

Definition

A comparative market analysis (CMA) benchmarks a property against comparable units on size, location, condition, tenure, and recent sale or asking prices to guide pricing or offers. In Philippine real estate, brokers use CMAs alongside Price Per Square Meter Trends and local assessments to set listing prices and advise buyers, especially in competitive markets like Metro Manila.

Key Components

  • Comps selection: recent sold, active, and expired listings within similar location and specs.
  • Adjustments: for floor area, parking, view, finishes, age, and amenities.
  • Market context: absorption, days on market, and supply in the micro-market.
  • Benchmarks: zonal values and assessed value for tax context.
  • Output: recommended price range and strategy (list price, offer ceiling, or bid range).

How It Works

  1. Gather data on comparable sales and listings via Property Listings, MLS feeds, and broker networks.
  2. Filter comps by proximity, recency, property type, floor area, and condition.
  3. Apply adjustments to normalize differences (size, parking, view, finish).
  4. Review market metrics such as Days on Market and absorption to set positioning.
  5. Recommend a pricing range and track performance with Property Analytics and Real Estate Market Insights.

Pros & Cons

  • Pros: Grounded in local evidence; fast to prepare; supports realistic pricing and negotiation.
  • Cons: Limited by data quality; fewer comps in niche locations; needs frequent refresh in volatile markets.

Real-World Application (Philippine Real Estate)

  • Brokers in NCR and CALABARZON use CMAs to justify list prices for condos and house-and-lot inventory, balancing seller targets with buyer affordability.
  • For pre-selling vs. RFO comparisons, CMAs incorporate developer pricing, promos, and equity terms to show net effective cost.
  • Teams can centralize comps and refresh assumptions using Document Management System and monitor pricing tests through Dashboard Analytics.

References

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