A comparative market analysis compares your target property to similar homes that have recently sold in Los Angeles. The goal is to estimate a fair market value by looking at each comparable's sale price, location, size, condition, and days on market. When you receive a CMA, you should read it line by line to understand how each comparable supports or challenges the price opinion.
Start with the address and sale date of each comparable. In Los Angeles, where the market moves quickly, a sale that closed more than three months ago may not reflect current conditions. Ask your agent: Was this comparable a typical sale or did it involve a distressed property, a cash buyer, or a seller who needed a quick close? The average days on market in Los Angeles is 49, so a home that sold in 10 days or 120 days tells you something different about demand.
Next, compare the square footage, lot size, and number of bedrooms and bathrooms. Two homes may have the same sale price but very different per-square-foot values. In Los Angeles, a 1,500-square-foot home that sold for $1.13 million is not directly comparable to a 2,500-square-foot home at the same price. Ask: How does the agent adjust for differences in size or features like a pool, garage, or views?
Look at the condition and upgrades. A fully renovated home in Los Angeles will command a premium over one that needs work, even if the floor plan is identical. Ask: Was this comparable updated recently? Did it have a new kitchen, bathrooms, or roof? The CMA should note these adjustments. If it doesn't, request a breakdown of how the agent accounted for condition.
Finally, examine the location within Los Angeles. A home in one neighborhood can sell for double the price of a similar home in another area just a few miles away. Ask: How does this comparable's proximity to amenities, freeways, or noise compare to the subject property? The median sale price in Los Angeles is $1,130,000, but the range spans from $120,000 to $130,000,000, so location and specific characteristics matter far more than the citywide average. A good CMA will show you not just the numbers but the story behind each comparable.
Market figures based on 9082 closed MLS sales in Los Angeles, CA over the trailing 12 months.