CMA vs AVM: What's the Difference?
When determining your home's value, you'll encounter two main approaches:
CMA (Comparative Market Analysis)
- Prepared by a licensed real estate agent
- Analyzes recent comparable sales in your area
- Accounts for your home's unique features and condition
- Considers current market trends and buyer demand
- Includes adjustments for upgrades, lot size, location
- Typically accurate within 3-5% of sale price
AVM (Automated Valuation Model)
- Computer algorithm (Zillow Zestimate, Redfin Estimate)
- Uses public records and recent sales data
- Cannot see inside your home or assess condition
- Doesn't account for upgrades or unique features
- May use outdated or incorrect data
- Can be off by 10-20% or more
Important: Zillow's own data shows their Zestimate has a median error rate of 2.4% for on-market homes, but 7.5% for off-market homes. That's $22,500 on a $300,000 home.
Why Pricing Right Matters
The first two weeks on market are critical. Homes priced correctly from the start:
- Sell faster: Correctly priced homes sell 50% faster on average
- Sell for more: Overpriced homes often sell for less after price reductions
- Attract more buyers: Buyers search in price ranges; wrong price = wrong audience
- Avoid stigma: Multiple price drops signal desperation to buyers
The Pricing Sweet Spot: Price slightly below market value to generate multiple offers and potentially sell above asking price.