What's My Home Worth? How Valuations and CMAs Actually Work
Online estimates are a starting point, not an answer. Here's how a real comparative market analysis prices your home — and why it matters.
By Shivali Sharma, Real Estate Broker · Dulay Homes LLC
Every homeowner has typed their address into a site that spits out an instant 'value.' Those automated estimates (AVMs) are a fine starting point, but they're not how your home actually gets priced. Here's the difference — and why it matters when real money is on the line.
What an automated estimate can and can't see
An AVM uses public records and recent sales to model a value. It can't see your renovated kitchen, your view, your busy-street location, or the condition of the home next door that just sold. That's why two homes with identical 'stats' can be worth very different amounts — and why AVMs can be off by a wide margin in either direction.
How a comparative market analysis (CMA) works
A CMA prices your home the way an appraiser and a serious buyer will: by analyzing genuinely comparable recent sales — similar size, age, condition, and location — then adjusting for the specific differences between those homes and yours. It accounts for current inventory, what's pending, and how fast the local market is moving right now.
Why accurate pricing beats optimistic pricing
In a low-inventory market it's tempting to 'test' a high price. But overpriced homes sit, then cut — and a home with days-on-market and price reductions signals weakness to buyers, often netting less than a sharply priced home would have. Pricing correctly from day one captures the burst of attention every new listing gets.
Get the real number for your home
I prepare broker-reviewed valuations grounded in the actual comparable sales on your street, plus a net-proceeds estimate so you know what you'd walk away with after costs. It's free and there's no obligation — just the accurate number you need to make a confident decision.
Frequently asked questions
Are online home value estimates accurate?
- They're a reasonable starting point but can be off significantly because they can't see condition, upgrades, views, or micro-location. For an accurate figure, a broker-reviewed comparative market analysis (CMA) using actual comparable sales on your street is the standard.
How is a CMA different from an appraisal?
- Both analyze comparable sales, but an appraisal is a formal, licensed valuation usually ordered by a lender, while a CMA is a broker's pricing analysis used to set a list price or guide a buyer's offer. A well-prepared CMA closely anticipates what an appraisal will support.