In short
It looks at size, style, location, condition and timing, and adjusts for the differences.
It's how good agents price a listing or an offer on evidence, not feelings.
How a CMA works
An agent picks recently sold homes that are as close as possible to yours: same area, similar size, style, age, lot and condition. Then they adjust for differences, like an extra bathroom, a garage or a finished basement.
A good CMA also looks at the competition, meaning active listings buyers can choose from today, and at listings that expired without selling. The result is usually a price range, not one exact number.
CMA vs appraisal
A CMA is a real estate agent's opinion, used to set a list price or plan an offer. It isn't a formal valuation.
An appraisal is prepared by a professional appraiser, often designated by the Appraisal Institute of Canada (AACI or CRA) and bound by its practice standards. For a mortgage, the lender is usually the appraiser's client, even when you pay the fee, and lenders rely on their own valuation rather than an agent's CMA.
Limits worth knowing
A CMA is only as good as its comparables. Unique homes, rural properties and fast-changing markets have fewer clean matches, so the range widens. Layout, finishes and street appeal are hard to price, so two agents can reach different ranges from the same data.
It can't see hidden issues; an inspection does that. It's also different from your MPAC assessment, which for 2026 property taxes is still based on January 1, 2016 values.
Reading a CMA
Ask to see the sold properties, their sale dates, how close they are and what adjustments were made. Sales from several months back may need adjusting if the market has moved since.
Buyers use CMAs too. Before an offer, one helps you judge whether a list price is realistic and how far you're comfortable going. In Ottawa, agents pull these comparables from the MLS® System run through the Ottawa Real Estate Board (OREB).
Common questions about comparative market analysis
Is a CMA the same as an appraisal?
No. A CMA is a real estate agent's estimate of likely selling price based on recent comparable sales. An appraisal is a formal valuation by a professional appraiser, often AIC-designated, and it's what lenders typically rely on for a mortgage.
How accurate is a comparative market analysis?
It's as accurate as the comparables behind it. In a neighbourhood with many similar recent sales, a CMA can be close. For unique homes or a market that's shifting quickly, expect a wider range. Ask to see the sold properties, their sale dates and the adjustments made.
Why do sold prices matter more than asking prices?
Sold prices show what buyers actually paid, while asking prices are just a seller's starting point. A list price can be set high or low as a strategy. That's why a CMA leans on recent solds and uses active listings mainly to gauge competition.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.