The Ultimate Comparative Market Analysis Guide for the Hawaii Real Estate Exam

Last updated: April 2026

If you are preparing to earn your real estate license in the Aloha State, mastering property valuation is non-negotiable. One of the most heavily tested valuation concepts is the Comparative Market Analysis (CMA). Whether you are helping a seller price a beachfront condo in Waikiki or assisting a buyer in making an offer on a single-family home in Hilo, understanding how to properly execute a CMA is critical for both passing your exam and succeeding in your career. For a comprehensive overview of all tested topics, be sure to bookmark our Complete Hawaii Exam Guide.

In this guide, we will break down the mechanics of a CMA, highlight unique Hawaii-specific property factors, and walk you through the adjustment formulas you need to memorize for exam day.

What is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is a tool used by real estate licensees to estimate the value of a specific property (the "subject property") by comparing it to similar properties (the "comparables" or "comps") that have recently sold, are currently on the market, or have expired.

CMA vs. Appraisal in Hawaii

The Hawaii Real Estate Commission frequently tests candidates on the legal distinction between a CMA and a formal appraisal. Under Hawaii Revised Statutes (HRS) Chapter 467 (Real Estate Brokers and Salespersons) and HRS Chapter 466K (Real Estate Appraisers), a real estate licensee is legally permitted to provide a CMA or Broker's Price Opinion (BPO) to a client for the purpose of establishing a listing price or an offering price.

However, a licensee cannot refer to a CMA as an appraisal. An appraisal is an objective, unbiased estimate of value performed by a licensed or certified appraiser following the Uniform Standards of Professional Appraisal Practice (USPAP). When presenting a CMA in Hawaii, agents must clearly disclose that the document is a market analysis, not a formal appraisal.

Unique Hawaii Factors in a CMA

When conducting a CMA for the Hawaii exam, standard mainland valuation rules apply, but you must also account for several unique local factors. Using the wrong type of comparable property can completely invalidate your analysis.

1. Fee Simple vs. Leasehold

Hawaii is one of the few states where leasehold (LH) ownership is still relatively common, particularly in older condo buildings. A Fee Simple (FS) property includes both the structure and the land it sits on. A Leasehold (LH) property means the owner only owns the structure and leases the land for a set period.

Exam Tip: Never use a leasehold property as a comparable for a fee simple subject property (or vice versa). The valuation models are fundamentally different, and the remaining term on a leasehold property drastically alters its market value.

2. Ohana Units and ADUs

Many Hawaii properties feature "Ohana units" (Accessory Dwelling Units or ADUs). When selecting comps for a property with an Ohana unit, you must verify whether the unit is legally permitted. An illegal, unpermitted addition cannot be valued the same as a fully permitted Ohana dwelling.

3. Views, Water Rights, and Lava Zones

In Hawaii, micro-locations matter immensely. A property with an unobstructed ocean view commands a massive premium over a similar home one street back. Furthermore, understanding shoreline boundaries is vital; you might want to review Hawaii water rights and riparian law to understand how beachfront property boundaries are determined (the high wash of the waves). On the Big Island, you must also ensure your comps are in the same Lava Hazard Zone, as a Zone 1 property carries vastly different insurance costs and risks than a Zone 3 property.

The CMA Process: Step-by-Step

To succeed on the exam's math and valuation sections, you must understand the exact steps of creating a CMA.

Step 1: Gather Comparables

You should select 3 to 5 comparable properties. Ideal comps should be:

• Recently Sold: Closed within the last 3 to 6 months.
• Geographically Close: In the same neighborhood or subdivision.
• Similar in Features: Similar square footage, bed/bath count, year built, and lot size.

Step 2: Make Adjustments (The Golden Rule)

Because no two properties are exactly identical, you must adjust the sales prices of the comparables to make them match the subject property.

The Golden Rule of Adjustments: You NEVER adjust the subject property. You only adjust the comparables.

Memorize these two acronyms for the exam:

• CBS (Comp Better = Subtract): If the comparable has a feature the subject property lacks (e.g., an extra bathroom), you subtract the value of that feature from the comparable's sold price.
• CPA (Comp Poorer = Add): If the comparable lacks a feature the subject property has (e.g., the subject has a pool, but the comp does not), you add the value of that feature to the comparable's sold price.