Building a CMA Step by Step as a New NJ Agent

The short answer: A comparative market analysis (CMA) estimates a likely price range by comparing a home with similar homes that recently sold, plus what's currently active and pending. Build it in seven steps: define the subject property, pull the data, choose comparables, adjust for differences, check for concessions, reconcile to a range, and write it up. In New Jersey, every written CMA must say it isn't an appraisal, in print as large as the main text (N.J.A.C. 11:5-6.1(m)1i). Have your broker review your first few.

If you're unsure where a CMA ends and an appraisal begins, read our CMA vs. appraisal guide first. The steps below are a practical method (our suggestion), not a legal standard.

Step 1: What do you need to know about the subject property?

Collect the facts before you look at anything else:

  • Basics: property type, lot size, living area, bedrooms, bathrooms, age, garage, basement.
  • Condition and updates: kitchen, baths, roof, systems. Walk the home if you can, and take notes.
  • Public records: tax records and the assessment. Remember that NJ assessments often lag current prices, as our property tax guide explains.
  • Anything unusual: a busy road, a view, an in-law suite, a finished attic. These are the hardest things to price.

Mismatched facts are the most common CMA error. If the tax record and the seller disagree on square footage, note it and ask.

Step 2: Where does the data come from?

Your MLS is the main source for sold, pending, active and expired listings. Our guide to NJ's MLSs explains which systems cover which areas. Public records fill gaps. For neighborhood-level trends, our market data sources guide lists reliable public reports.

Ask your broker about firm and MLS rules on how you may use and share listing data with a client.

Step 3: How do you choose comparables?

Some general rules of thumb new agents use (our suggestions; adjust for the market):

  • Similar: same property type and style, close in size, age and bedroom count.
  • Nearby: same neighborhood or subdivision first, then widen. Stay on the same side of any feature that changes value, like a school boundary or a major road.
  • Recent: recent closed sales first. In a slow market you may need to go back further, so say so in the write-up.
  • Enough of them: several solid closed sales beat a long list of weak ones.

Also look at actives (your competition), pendings (what buyers are accepting now) and expireds (what didn't sell, often because of price).

Step 4: How do you adjust for differences?

Adjust the comparable to look like the subject, never the other way around. If the comparable has a feature the subject lacks, subtract its value from the comparable's price. If it lacks one the subject has, add. Our valuation exam guide drills the rule with examples.

Here's a quick made-up example. A comparable sold for $450,000. It has a finished basement the subject doesn't have, which you estimate at $15,000. The subject has an extra half bath the comparable lacks, which you estimate at $5,000. The adjusted value is $450,000 − $15,000 + $5,000 = $440,000.

Two cautions:

  • Base adjustments on evidence, such as paired sales in the area, not guesses. When you can't support an amount, describe the difference in words instead.
  • Keep adjustments small. A comparable that needs large or many adjustments probably isn't comparable.

Step 5: Did the sale price include concessions?

A recorded price can overstate value if the seller paid toward the buyer's costs. Lenders deal with this directly. Fannie Mae treats contributions above its limits, and non-realty items like cash gifts or furniture, as sales concessions that must be deducted from the sales price (Fannie Mae Selling Guide B3-4.1-02). When an MLS record shows a seller credit, note it and consider whether the comparable's price needs a closer look.

Step 6: How do you turn the comps into a price?

Reconcile, don't average. Give the most weight to the comparables that needed the fewest and smallest adjustments. Then sanity-check the result:

  • Does the range fit what's pending now?
  • Would this home stand out against the actives, for better or worse?
  • What do the expireds suggest about where buyers stop?

Present a range and your reasoning, not a single number. The seller decides the list price.

Step 7: What must the written CMA include in NJ?

  • The "not an appraisal" statement. Every written CMA given to a consumer must state that it isn't an appraisal and shouldn't be considered the equivalent of one. The statement must be at least as large as the predominant print size (N.J.A.C. 11:5-6.1(m)1i). Check your template.
  • Accurate labels. Don't call it a "certified appraisal" or a "licensed appraisal." NJ law reserves those terms for state-certified and licensed appraisers (N.J.S.A. 45:14F-21(a), (b)).
  • The right audience. The appraisal law lets you give pricing advice directly to an owner or prospective buyer for their own use (N.J.S.A. 45:14F-21(c)). Opinions prepared for others, such as a lender's broker price opinion, raise appraisal-law questions. The NJ Appraiser Board has said a BPO is an "appraisal" under NJ law that a broker may prepare only within the statute's exemptions (Appraiser Board advisory opinion). Talk to your broker before taking on that kind of work.
  • Your sources and dates, so the seller can see what you used.

If you reuse comparables in marketing, follow the ad rules. Don't call a home "sold" until the closing has happened, and use "under contract" after attorney review (N.J.A.C. 11:5-6.1(o)).

Once it's ready, our listing presentation guide covers how to walk a seller through it.

Valuation is a core pre-licensing topic, and Business Elementary's 75-hour course covers it before you build your first CMA.

Sources

Last reviewed: November 1, 2026

Frequently Asked Questions

How many comparables should a CMA use?

There's no legal number in NJ's rules. Many agents aim for several strong closed sales plus current actives and pendings (our suggestion). Quality matters more than count.

Can I give a seller a CMA by email or text?

Yes, but it's still a written CMA, so it needs the "not an appraisal" statement in print as large as the predominant size (N.J.A.C. 11:5-6.1(m)1i).

Can I use a pending sale as a comparable?

You can show it as evidence of current demand, but it hasn't closed, and you can't advertise it as sold before the closing (N.J.A.C. 11:5-6.1(o)). Lean on closed sales for the price range.

Can I prepare a CMA for a buyer, not just a seller?

Yes. The appraisal law's exemption covers pricing advice given directly to a property owner or prospective purchaser for their own use (N.J.S.A. 45:14F-21(c)).