By Weiting Yu, Texas-licensed agent (TREC #787385) · Updated November 13, 2026
What goes into a CMA?
- Sold homes. What buyers actually paid, usually in the last three to six months. These carry the most weight.
- Pending homes. The newest evidence of what buyers accept, though the price is not public until closing.
- Active listings. Your competition. They show what sellers hope for, not what buyers pay.
- Expired and withdrawn listings. The prices the market refused.
How are comparable homes chosen?
The closer the match, the less guesswork.
- Same subdivision first, then the nearest similar neighborhood.
- Similar living area, generally within 10% to 15%.
- Similar age, lot size, bedroom count and number of stories.
- Same school attendance zone, which buyers search by.
- Sold recently. In a market that is moving, a sale from last year needs a time adjustment.
How are differences adjusted?
No two homes match, so each comp's price is adjusted toward yours. If a comp has a pool and your home does not, the comp's price is adjusted down by what buyers in that area pay for a pool. The same is done for garage spaces, lot premiums, condition and updates.
Upgrades rarely return their cost. A $60,000 kitchen may add $25,000 in value. A good CMA uses what buyers paid for the feature in recent sales, not what it cost to build.
Why isn't price per square foot enough?
It ignores everything that makes two homes of the same size sell differently: lot, condition, floor plan, garage, pool and location within the neighborhood. Smaller homes also sell for more per foot than larger ones. Use it as a sanity check on the result, not as the method.
CMA, appraisal or online estimate: what is the difference?
| Question | CMA | Appraisal | Online estimate |
|---|---|---|---|
| Who prepares it | A real estate agent | A licensed appraiser | An algorithm |
| Purpose | Choosing a list or offer price | The lender's loan decision | A quick ballpark |
| Sees inside the home | Yes, if the agent tours it | Yes | No |
| Typical cost to the seller | Usually none | Paid by the buyer, through the lender | None |
| When | Before listing | After a contract is signed | Any time |
Texas is a non-disclosure state, so sale prices are not in county records. Online estimates work with less data here than in most states, and their error is usually larger.
How does a CMA become a list price?
The CMA gives a range. Where you list inside it is strategy.
- Supply. With five or six months of inventory, price at or just under the closest comps. Buyers have alternatives.
- Search brackets. Buyers filter in round numbers. A home at $500,000 appears in searches both up to and from $500,000. A home at $505,000 misses the first group.
- Your timeline. A seller who needs to close in 45 days prices differently from one who can wait.
- The first two weeks. New listings get the most attention. An overpriced start wastes it, and later price cuts read as weakness.
When should the price be reviewed?
If showings are steady but no offers come, the price is close and the home is losing to a competitor. If there are few or no showings in the first two weeks, buyers are rejecting the price from the listing alone.
Frequently asked questions
How long is a CMA good for?
About 30 to 60 days. Refresh it if new comps close or the market shifts before you list.
Can I do my own CMA?
You can study active listings on any portal, but sold prices in Texas come from the MLS. An agent's CMA has data yours cannot.
What if the appraisal comes in below the contract price?
The buyer and seller renegotiate, the buyer pays the gap in cash, or the buyer uses the contract's appraisal terms. Pricing from solid comps makes this less likely.
Is a CMA included with a flat fee listing?
With KAT Realty Group it is. Pricing is part of our $5,999 full-service flat fee (homes under $900,000; higher-priced homes have their own fixed fee), along with photography, MLS listing, negotiation and closing coordination. Sellers pay $600 at listing signing and the balance at closing, only if the home sells. Book a free consultation.
