Selling your home in BC is an exciting step and it can also feel overwhelming. Especially if it’s your first time!
And if you’re thinking about selling your place, you’re probably wondering how much you can get for it. So, how do you ensure your price aligns with market expectations without leaving money on the table? Or worse, scare off potential buyers?
This is where understanding Comparative Market Analysis (CMA) becomes important.
This guide will break down everything you need to know about CMAs, why they’re important, and how your Realtor will help you calculate this to arrive at the recommended list price for your property.
What is a Comparative Market Analysis (CMA)?
In short, a Comparative Market Analysis (CMA) is a tool that Realtors and agents use to determine a property’s current market value. The CMA will ultimately help you determine what your listing price should be based on the current market.
The CMA is derived from analyzing data, specifically from recently sold properties, active listings, and expired sales in your area. Among many other variables.
What’s the Difference Between the CMA Value and Assessed Value?
A common point of confusion for sellers in BC is the difference between a CMA values and an assessed values provided by BC Assessment.
The CMA reflects your home’s current market value based on comparable sales and market trends. It’s designed to help you set a realistic listing price.
The assessed value from BC Assessment determines this value for property tax purposes. It’s usually based on your home’s condition and market value as of July 1st of the previous year.
Because the BC Assessment value doesn’t account for recent changes in the market or updates you’ve made to your home, it’s often different from what your listing price will be.
Is a CMA Different from an Appraisal?
While both a CMA and an appraisal aim to estimate your home’s value, they differ in purpose and who conducts them:
A CMA is prepared by a Realtor to guide your list price. It’s a free, no-obligation task a potential Realtor can help you with that’s based on comparative research.
Whereas an appraisal is a formal evaluation performed by a licensed appraiser and often required by a bank or lender before approving a buyer’s mortgage. It accounts for similar factors but includes on-site inspections and is typically more detailed.
Key Factors That Influence a CMA
Here are some key factors that your Realtor will look into when evaluating the CMA for your home:
Location
Residential properties close to high-demand amenities like Skytrain stations, schools, or main urban centres, like Metrotown or Richmond Centre, typically attract higher prices.
Size and Layout
The square footage and floor plan of your home are essential in comparative analysis. Essentially, there will be a price-per-square-foot average that will help determine the total market value.
Age and Condition of the Property
Modern, well-maintained homes usually get higher prices. While there are exceptions for things like leasehold properties or heritage homes, typically if it’s a newer build, it’s price will reflect that.
Features
Special features such as a finished basement, hardwood floors, or an upgraded kitchen can add value. These upgrades may not be reflected in the assessed value by BC Assessment. That’s why the CMA is an important tool that will incorporate any improvements and investments you have made over the years.
It ensures your list price is competitive, aligned with current buyer expectations, and gives you an estimate for any financial planning purposes.
Recommended Reading: The Costs of Selling Your Home in BC
The Importance of a CMA
Setting the right list price for your home can make or break your selling experience. If you price it too high, your home may sit on the market for months, and eventually become stale. Price it too low and you’re obviously leaving money on the table.
So, here’s how a CMA helps you, as a seller, when it comes time to bring your property to market:
Attracts Serious Buyers
There are hundreds of new home listings a month across Metro Vancouver’s competitive real estate market. A well-priced home catches the attention of motivated buyers and other Realtors who are ready to make offers.
Overpricing can easily turn away potential buyers which will leave your home sitting on the market. If it sits long enough, you’ll have to re-price or take it off the market until it’s a better time. For instance, average days on market for a detached home in Metro Vancouver was 45 days, according to February 2025 data from Greater Vancouver Realtors.
Saves Valuable Time
Pricing your home correctly ensures it aligns with what buyers in your market are looking for. This means fewer delays and a smoother sales process, allowing you to move on to your next chapter without unnecessary stress.
This can become increasingly important if you’re waiting on the sale of your current home to finance and purchase another property, or if you simply need a place to live and don’t want to rent.
Build Trust
When your home is priced in line with current market trends, it builds trust with buyers and their agents. For example, if your townhouse is listed for $1.2 million and similar properties in your area recently sold for the same amount, buyers will feel confident in making an offer closer to your asking price. This eliminates the risk of low-ball offers and makes it more likely you’ll get competitive bids.
Strengthens Negotiation Power
A well-researched CMA gives you a solid foundation for negotiations. While you typically won’t be the one doing the negotiations, as your Realtor will handle that, it’s important you have data to back your listing price.
For example, if you’re selling a detached home in East Vancouver and your CMA shows that similar homes recently sold for $1.8 million, you can confidently negotiate with buyers who might try to push for a lower price, like $1.4 million.
CMAs ultimately ensure that you hit the sweet spot with your price, so it appeals to buyers while maximizing the number you’re looking for.
Recommended Reading: Can You Negotiate Realtor Fees in BC? [Here’s How]
How a Realtor Gets to Your Potential List Price
While we covered a few factors that go into the CMA in the beginning, here is deeper dive into what goes into a CMA when selling in Metro Vancouver:
1. Analyze Comparable Properties (Comps)
Your Realtor will begin by conducting a search for comparable properties in your region, typically referred to as the “comps.” Aspects that a comparable property will be defined as can include the home’s location, size, age, condition, and features.
Comps include recently sold homes (to reflect the recent market), properties currently listed on the MLS, and recently taken down listings.
Beyond basic criteria like square footage and the number of bedrooms or bathrooms, your Realtor will also look at details such as the quality of finishes, floor plan functionality, outdoor space, and proximity to amenities like Skytrain stations or commercial shopping centres.
2. Evaluate Market Trends
Your Realtor will be in-tune with the broader market trends, like if we’re in a seller’s market or buyer’s market, as it’s essential to setting an accurate price. Market trends also include looking into key indicators like the average days on market (DOM) for properties similar to yours, the ratio of list price to sale price, and the inventory levels in your area (i.e., how many homes are available and how quickly they’re selling).
External factors like interest rates, economic conditions, and local employment opportunities are also taken into account, as they can impact demand and pricing expectations.
3. Adjust for Differences
Even homes that seem similar ‘on paper’ can have huge differences in market values. Your Realtor will carefully adjust for these differences so your home is priced right.
For example, the CMA will account for factors like your lot size, any recent renovations (e.g., updated kitchens or bathrooms), or premium features such as a pool, home office, or energy-efficient upgrades.
On the flip side, they may also consider any required maintenance or necessary structural upgrades, like an old roof, an odd or less desirable layout, or a busy corner. These adjustments provide a fine-tuned understanding of how your home stands out compared to others.
4. Incorporate Hyperlocal Knowledge
With Comps, market trends, and difference adjustments, next is the incorporation of any local expertise.
An experienced Realtor will go beyond the raw data and incorporate insights about your specific neighborhood, street, or even block. This includes understanding how factors like school district reputation, proximity to amenities (parks, shops, public transit), and neighborhood trends (e.g., gentrification or new developments) can impact desirability and pricing.
For example, Daniel John at Metro Vancouver life specializes in homes across the Metro Vancouver area specifically, not all of BC. So there is a high level of local knowledge the team brings to clients.
5. Review the Data and Strategy with You
Once all the research and calculations are complete, your Realtor will sit down with you to review the CMA.
They’ll walk you through the comps they used, the adjustments they made, and the rationale behind the recommended list price. They’ll also discuss your goals as a seller, which can be just as important as a data input than the other stuff that goes into a CMA.
Aligning to your desired price is incorporated into the strategy, accordingly. This collaborative process ensures you fully understand the complexities of the pricing strategy and feel confident and well-informed before next steps with listing it.
6. Finalize the List Price
Once everyone is on the same page with getting it listed, it’s in your Realtor’s hands to make this a stress-free and easy process for you and your family.
How Do I Get a Comparative Market Analysis?
The good news? Getting a CMA done is straightforward and free when you work with a qualified Realtor.
Here are the steps to get started:
- Connect with a Realtor: Reach out to trusted professionals who specialize in your area and have experience with comparative market analysis.
- Schedule a Consultation: Share details about your property, including upgrades and special features, to help them prepare an accurate CMA.
- Review Your CMA: Sit down with your Realtor to discuss the findings and next steps for listing your home.
Turning Knowledge into Confidence
Now that you have an understanding of what a CMA is and what goes into it, you should feel empowered to make an informed decision about selling, with confidence.
By working with a professional who provides a detailed CMA, you’ll have the data and insights necessary to attract buyers and achieve your goals.
Are you ready to discover the value of your Metro Vancouver home? Contact us today and we’ll provide a no-obligation and free CMA, so you have the data you need to make an informed decision.
