CMA Guide for BC Realtors: How to Do a Comparative Market Analysis (2026)
A well-prepared CMA wins listing presentations, sets realistic seller expectations, and results in listings that sell faster. This step-by-step guide covers comparable selection, adjustments, pricing strategy, and presentation.
Why Your CMA Determines Your Listing's Success
Overpriced listings sit. Underpriced listings leave money on the table. The CMA is the tool that finds the number where neither happens — and a compelling CMA presentation is often the difference between winning and losing a listing.
In BC's stratified market — where a two-block difference in location can mean a $200,000 price swing — a generic CMA from a web tool is rarely sufficient. This guide covers the methodology a licensed BC realtor needs to build a defensible, accurate CMA.
The process has six steps: define the subject property, gather data, select comparables, adjust for differences, determine the value range, and present the results to the seller.
Step 1: Define the Subject Property
Before selecting a single comparable, understand the subject property completely. Pull the BC Assessment data, ParcelMap information, and any LTSA title documents to verify the basic facts: lot size, year built, gross living area, legal description, and any encumbrances.
Walk the property and note every feature that affects value: layout (one-level vs. split-level), finishes (original vs. updated kitchen/bathrooms), mechanical condition, parking (garage vs. carport vs. surface), outdoor space, and any deferred maintenance. These observations directly inform your adjustments later.
BC Data Sources:BC Assessment Authority (assessment.bcassessment.ca) for lot size, year built, and assessed value. ParcelMap BC for legal parcel boundaries. LTSA (ltsa.ca) for title, easements, and covenants. Magnate360's data enrichment pulls all three automatically from the listing address.
Step 2: Gather Market Data
Access recent sales from your MLS system. Search for properties that sold in the last 90 days (extend to 180 if your market is slow or the property type is rare) within a reasonable radius — typically 0.25 to 0.5 miles for urban areas, up to 1 mile in suburban settings.
Pull three types of listings for your analysis:
The foundation of your CMA. Use these to establish the value range. Recent sales are the only true market evidence — what buyers actually paid.
Current competition. These set the context of what buyers are comparing your listing to right now. A listing priced above current active competition will be ignored.
Properties that failed to sell show the market ceiling. If similar properties expired at $1.1M, pricing above $1.1M carries significant risk.
Step 3: Select the Best Comparables
Not every recent sale qualifies as a comparable. A good comparable is similar to the subject in property type, size, location, age, and condition. The closer the comparable, the fewer adjustments required — and the more defensible your CMA.
| Criteria | Ideal | Acceptable | Red Flag |
|---|---|---|---|
| Sale date | < 60 days | 60–90 days | > 180 days |
| Distance | < 0.25 mile | 0.25–0.5 mile | > 1 mile |
| GLA (sq ft) | ± 10% | ± 15% | > ± 25% |
| Bedrooms | Same count | ± 1 bed | > ± 2 beds |
| Property type | Identical | Same subtype | Different type |
Aim for 3–5 comparables where at least 3 meet the “ideal” criteria. If all your comparables require heavy adjustment, disclose this in your presentation and widen your value range to reflect the uncertainty.
Step 4: Adjust for Differences
Every difference between a comparable and the subject property requires a dollar adjustment. The adjustment is applied to the comparable's sale price to normalize it — to answer the question: “What would this comparable have sold for if it were identical to our subject property?”
The rule: if the comparable is superior to the subject in some way, subtract from its sale price. If it is inferior, add to its sale price. Intuitively: a better comp sold for more, so we reduce its price to estimate what a lesser property (our subject) would fetch.
Common Adjustment Values (Metro Vancouver, 2026)
Ranges vary by specific sub-market, property type, and market conditions. Calibrate against your own recent sales data for your farm area.
Once you apply adjustments to each comparable, you have an adjusted sale price — an estimate of what each comp would have sold for if it were identical to the subject. Average or weight these adjusted prices to arrive at a value range.
Step 5: Determine the Value Range
Rather than a single “magic number,” present a value range with three scenarios: conservative (quick sale), likely (market value), and optimistic (top of market). Each has different time-on-market implications.
Conservative (quick sale)
Priced 2–4% below the midpoint of comparable range. Expect multiple offers and a sale in 7–14 days. Best strategy in a declining or balanced market where speed is valued.
Risk: leaving value on tableLikely (market value)
Priced at the midpoint of your adjusted comparable range. Expected days on market: 14–30 days. The most defensible position supported by the most comparables.
Risk: moderate — depends on market timingOptimistic (top of market)
Priced 3–6% above the midpoint. May require a price reduction after 2–4 weeks if no offers. Only appropriate if the property has a genuinely differentiating feature that justifies premium pricing.
Risk: extended DOM, eventual price reductionStep 6: Present the CMA to the Seller
A CMA that's technically accurate but poorly presented fails. Sellers need to trust the methodology before they accept the conclusion. Structure your presentation as follows:
1. Open with market context
Show the macro picture: months of inventory in their area, average days on market, list-to-sale price ratio for the last 90 days. This frames everything that follows.
2. Walk through comparables with photos
Show each comparable on a map and with interior photos. Explain why you selected it and what makes it similar. Sellers engage more when they can see the properties you're comparing them to.
3. Explain your adjustments
Walk through the key adjustments — especially the ones that most affect the price. Transparency here builds credibility. Sellers who understand the methodology are more likely to accept the conclusion.
4. Present the range, then the recommendation
Show the adjusted prices for all comparables, the resulting value range, and your recommended list price within that range. Explain where in the range you're recommending and why.
5. Address BC Assessment proactively
Most sellers will ask why your number differs from BC Assessment. Have a ready answer: assessment is as-of July 1 of the prior year, uses mass appraisal without a property inspection, and frequently diverges from current market value. Show the assessment-to-sale-price ratio for your comparables.
CMA Preparation Checklist
Frequently Asked Questions
What is a Comparative Market Analysis (CMA)?
A Comparative Market Analysis is a detailed report prepared by a real estate agent that estimates the current market value of a property by comparing it to similar recently sold properties (comparables) in the same area. Unlike a formal appraisal (which is completed by a licensed appraiser for mortgage purposes), a CMA is an agent's professional opinion of value used to guide pricing decisions. The CMA is the foundation of every listing presentation.
How many comparables should a CMA include?
The standard is 3–5 recently sold comparables, ideally sold within the last 90 days and within a quarter-mile of the subject property. In slower markets or unique property types, you may need to extend the time frame to 6 months or the search radius to a half-mile. Include only properties that are genuinely comparable in size, condition, location, and features — a single irrelevant comparable can distort the entire analysis. For context, also include 2–3 active listings to show current competition.
How do you adjust for differences between comparables?
Each difference between the subject property and a comparable requires a dollar adjustment. Common adjustments include: square footage ($150–$300/sq ft in Metro Van), extra bedrooms or bathrooms ($15,000–$25,000 each), garage vs. no garage ($20,000–$35,000), updated kitchen or bathrooms ($15,000–$30,000), lot size in detached homes, view, and age/condition. Adjustments are applied to the comparable's sale price — if the comparable is better, subtract; if it is worse, add. The goal is to normalize all comparables to what they would have sold for if they were identical to the subject property.
How current do comparables need to be?
Ideally, comparables should have sold within the last 60–90 days. In a rapidly changing market, even 60-day-old sales may not reflect current conditions — in which case, apply a market condition adjustment based on the change in the benchmark price between the comparable's sale date and today. BC Assessment and BCREA's MLS statistics are good references for market trend adjustments. The older the comparable, the more critical this adjustment becomes.
What is the difference between a CMA and a BC Assessment?
BC Assessment estimates your property's value as of July 1 each year for tax purposes — not for sale purposes. It uses mass appraisal methodology without inspecting individual properties and frequently lags the market by 12–18 months. A CMA is current and specific to your property's condition, upgrades, and location. Sellers often confuse assessment value with market value — your CMA should explicitly address this with a chart showing the assessment-to-sale-price ratio for your comparables.
How do I present a CMA to a seller?
Present the CMA in three stages: (1) Market context — show the seller their market's supply/demand metrics: months of inventory, days on market, list-to-sale price ratio. (2) Comparable analysis — walk through each comparable, explaining why you selected it and what adjustments you made. Use maps and photos. (3) Pricing recommendation — present a range (low, likely, high) and explain the risk/reward tradeoff at each price point. Never start with the number — build the case first so the seller understands the methodology before hearing the price.
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