Mastering the Comparative Market Analysis (CMA) for the Kansas Real Estate Exam

Last updated: April 2026

Pricing a property correctly is one of the most critical skills a real estate licensee can possess. For aspiring agents preparing for the Kansas real estate licensing exam, understanding the intricacies of a Comparative Market Analysis (CMA) is not just about passing a test—it is about fulfilling your fiduciary duties to your future clients. Whether you are helping a seller determine a listing price or advising a buyer on a competitive offer, mastering the CMA is essential.

This guide will walk you through the regulatory framework, the step-by-step process, and the specific rules you need to know to ace the CMA portion of your exam. For a broader overview of all exam topics, be sure to review our Complete Kansas Exam Guide.

What is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is an evaluation of similar, recently sold homes (called comparables or "comps") that are located near a subject property. Real estate licensees use a CMA to establish a realistic price range for a property.

It is crucial for Kansas exam candidates to understand that a CMA is an opinion of price, not an opinion of value. Only a licensed appraiser can determine a property's formal "value." Confusing a CMA with a formal appraisal is a violation of the Kansas Real Estate Brokers' and Salespersons' License Act (KREBSLA) and is a frequently tested concept on the state exam.

Kansas Regulatory Framework for CMAs

When performing a CMA in Kansas, licensees must adhere to the rules set forth by the Kansas Real Estate Commission (KREC) and the Brokerage Relationships in Real Estate Transactions Act (BRRETA).

The Non-Disclosure State Factor

One of the most important Kansas-specific details to remember is that Kansas is a non-disclosure state. This means that the final sales price of a real estate transaction is not a matter of public record. Consequently, Kansas real estate agents rely heavily on their local Multiple Listing Service (MLS) to access accurate sold data. Without MLS access, performing an accurate CMA in Kansas is exceptionally difficult.

BRRETA and Pricing Advice

Under BRRETA, a seller's agent has a statutory duty to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. This includes providing a well-researched CMA before signing a listing agreement. Before you even draft the Kansas contract essentials and elements for a listing, you must present data that helps the seller make an informed decision about their listing price.

The 4-Step CMA Process for Kansas Agents

The state exam will test your knowledge of the procedural steps involved in creating a CMA. The process generally follows four distinct steps.

Step 1: Analyze the Subject Property

Before looking at other homes, you must thoroughly evaluate the subject property. You need to gather data on the home's square footage, age, lot size, number of bedrooms and bathrooms, condition, and any special features or recent upgrades.

Step 2: Select Comparable Properties (Comps)

The golden rule of selecting comps is to find properties that are as similar to the subject property as possible. Ideal comps should have sold within the last 3 to 6 months. Because Kansas features a mix of dense urban centers (like Wichita and Overland Park) and vast rural agricultural areas, the acceptable distance for a comp varies wildly based on the property's location.

Standard Comp Search Radius in Kansas

When selecting comps, you should look for three types of properties:

Recently Sold: The best indicator of what a willing buyer will pay a willing seller.
Active Listings: Shows the current competition.
Expired Listings: Demonstrates what the market is not willing to pay, highlighting the dangers of overpricing.

Step 3: Adjust the Comparables

This is where exam candidates often stumble. Because no two properties are exactly alike, you must adjust the sales price of the comparable properties to match the subject property. Rule of thumb for the exam: Never adjust the subject property; always adjust the comps.

The Adjustment Formula:

If the comp is SUPERIOR to the subject property, SUBTRACT value from the comp. (CBS: Comp Better = Subtract)
If the comp is INFERIOR to the subject property, ADD value to the comp. (CIA: Comp Inferior = Add)

Practical Example: You are pricing a subject property with 3 bedrooms. You find an identical comp that recently sold for $250,000, but it has 4 bedrooms. If the local market values a bedroom at $10,000, the comp is superior. You must subtract $10,000 from the comp's sold price. The adjusted value of the comp is now $240,000.

Step 4: Determine the Value Range

After adjusting 3 to 5 comparables, you will have a cluster of adjusted sales prices. Instead of giving the client one exact number, a professional CMA provides a price range. You will then reconcile these numbers, giving more weight to the comps that required the fewest adjustments.

Market Conditions and External Factors

A CMA is a snapshot in time. When preparing for the exam, remember that external economic factors can shift the validity of a CMA overnight. For instance, changes in the financial markets, such as fluctuations in interest rate types, directly impact buyer purchasing power. If mortgage rates spike, a comp that sold three months ago might reflect a more robust market than the one your seller is currently entering.

CMA vs. Formal Appraisal vs. BPO

The Kansas real estate exam frequently tests your ability to distinguish between different valuation methods. You must know the differences to avoid violating KREC regulations.

CMA (Comparative Market Analysis): Performed by a real estate licensee to help a client determine a listing or offering price. It is an informal estimate of market price.
Appraisal: Performed by a licensed appraiser. It is a formal, objective estimate of value required by lenders. Appraisers must follow the Uniform Standards of Professional Appraisal Practice (USPAP). If a property fails to appraise for the purchase price, buyers often rely on contingencies in purchase agreements to renegotiate or cancel the contract.
BPO (Broker Price Opinion): A written estimate of value by a real estate broker, often requested by a lender for a short sale, foreclosure, or refinancing. In Kansas, licensees can charge a fee for a BPO, provided it is not represented as an appraisal.

Frequently Asked Questions (FAQs)

Can a Kansas real estate salesperson charge a separate fee for a CMA?

Generally, a CMA is provided as a complimentary service to secure a listing. However, under Kansas law, a broker may charge a fee for a Broker Price Opinion (BPO) or a CMA, provided it is clearly stated in writing that the document is not an appraisal and the preparer is not a licensed appraiser.

Why is Kansas being a "non-disclosure state" important for CMAs?

Because Kansas does not make real estate sales prices public record, the local county appraiser's office only has estimated values for tax purposes, not actual sold data. Real estate agents must rely on MLS data to find accurate sold prices for their comps, making MLS membership vital for accurate pricing.

What is the CBS and CIA rule on the real estate exam?

This is a memory aid for making CMA adjustments. CBS stands for "Comp Better = Subtract" (if the comp has a feature the subject lacks, subtract the value of that feature from the comp's price). CIA stands for "Comp Inferior = Add" (if the comp lacks a feature the subject has, add the value to the comp's price).

How long is a CMA valid in Kansas?

A CMA does not have a statutory expiration date, but because real estate markets are fluid, a CMA is generally considered "stale" after 3 to 6 months. In rapidly changing markets, a CMA may need to be updated after just a few weeks.

Can I use active listings to determine the final suggested price?

While active listings are useful to show sellers their current competition, they should never be used as the primary basis for a pricing recommendation. Active listings only show what sellers hope to get, whereas sold properties show what buyers are actually willing to pay.