Updated April 2026

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

Last updated: April 2026

Whether you are preparing to list a historic rowhome in Baltimore, a sprawling estate in Potomac, or a waterfront property in Annapolis, determining the correct listing price is one of the most critical skills a real estate agent can possess. For candidates taking the Maryland real estate licensing exam, mastering the Comparative Market Analysis (CMA) is essential—not only for practical application but also to understand the strict legal boundaries set by the Maryland Real Estate Commission (MREC). For a broader overview of all exam topics, be sure to review our Complete Maryland Exam Guide.

This comprehensive guide covers the fundamentals of creating a CMA, the specific Maryland regulations governing price opinions, and the step-by-step adjustment processes you will be tested on during your exam.

What is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is an estimate of a property's likely selling price, prepared by a licensed real estate agent. It is generated by evaluating recently sold, currently active, and expired listings of similar properties (comparables or "comps") in the same geographic area.

While an appraisal is a formal, objective valuation performed by a licensed appraiser for lending purposes, a CMA is a marketing tool used by real estate licensees to help sellers set realistic listing prices and to assist buyers in making competitive offers.

Maryland Legal Requirements for CMAs

The Maryland real estate exam heavily tests a licensee's understanding of the legal distinction between a CMA and an appraisal. Under the Maryland Real Estate Brokers Act (Title 17 of the Business Occupations and Professions Article) and the Maryland Real Estate Appraisers Act (Title 16), real estate agents are strictly prohibited from referring to a CMA as an "appraisal."

The Mandatory Disclaimer

In Maryland, whenever a licensee provides a CMA or a Broker Price Opinion (BPO), they must include a clear, written disclosure stating that the analysis is not an appraisal and should not be considered as such. Misrepresenting a CMA as a formal appraisal is a direct violation of Maryland law and can lead to severe disciplinary action by the MREC.

Competence and Geographic Expertise

Maryland law requires licensees to perform their duties with competence. If you are asked to perform a CMA in an area or for a property type you are unfamiliar with (e.g., a commercial farm when your expertise is residential condos), you must either disclose your lack of expertise to the client, partner with an experienced agent, or decline the assignment. Understanding these boundaries is a key component of Maryland Real Estate Ethics and Standards.

The Step-by-Step CMA Process

To succeed on the exam and in your real estate career, you must understand the standard procedure for developing an accurate CMA.

1. Evaluate the Subject Property

The "subject property" is the home you are evaluating. Before looking at comps, you must gather detailed information about the subject property, including:

  • Location: Neighborhood, school district, and proximity to amenities.
  • Size: Total square footage, lot size, number of bedrooms, and bathrooms.
  • Condition & Age: Year built, recent renovations, and overall wear and tear.
  • Unique Features: Waterfront access, historic designations, or specific local fees. For example, understanding how local utility or neighborhood fees impact value is crucial. You can learn more about this in our guide on Maryland Special Assessments Explained.

2. Select the Right Comparables (Comps)

The golden rule of selecting comps in Maryland is to find properties that are as similar to the subject property as possible. Ideal comps should be:

  • Recently Sold: Closed within the last 3 to 6 months.
  • Geographically Close: Within a 1-mile radius (or within the same subdivision).
  • Similar in Scope: Within 10-15% of the subject property's square footage and age.

A robust CMA typically includes 3-4 recently sold properties, 2-3 active listings (to gauge current competition), and 1-2 expired listings (to show the client what price points the market rejected).

3. Make Adjustments (The CBS/SBA Rule)

Because no two properties are exactly alike, you must adjust the sales price of the comparables to match the subject property. Never adjust the subject property.

Remember this essential exam acronym:

  • CBS (Comp Better = Subtract): If the comparable property has a feature the subject property lacks, you subtract the value of that feature from the comp's price.
  • SBA (Subject Better = Add): If the subject property has a feature the comp lacks, you add the value of that feature to the comp's price.

Practical Scenario:
Your subject property has 3 bedrooms and no garage. A recently sold comparable property in the same neighborhood is identical, except it has 4 bedrooms and a 1-car garage. It sold for $450,000. In this market, a bedroom is valued at $15,000, and a 1-car garage is valued at $20,000.
Application: The Comp is Better (CBS). You must subtract the value of the extra bedroom ($15,000) and the garage ($20,000) from the comp's sold price.
Formula: $450,000 - $15,000 - $20,000 = $415,000.
The adjusted value of the comparable is $415,000.

Typical CMA Feature Adjustments in Maryland Markets ($)

Presenting the CMA to Clients

Once you have calculated an adjusted price range, you will present this data to your clients. A CMA should provide a range (e.g., $410,000 to $425,000) rather than a single exact number, allowing the seller to choose a pricing strategy based on their urgency to sell.

When presenting your CMA and subsequently marketing the property, ensure that all promotional materials accurately reflect the property's features without exaggerating its value. Strict adherence to state marketing laws is mandatory; brush up on these rules in our Maryland Advertising Regulations Compliance guide.

Frequently Asked Questions (Maryland CMA)

Can a Maryland real estate agent charge a fee for a CMA?

Yes, a real estate licensee in Maryland may charge a fee for preparing a CMA or a Broker Price Opinion (BPO). However, the fee must be paid to the brokerage, not directly to the agent, and the document must clearly state that it is not an appraisal.

What is the difference between a CMA and a BPO?

A CMA is typically prepared for a buyer or seller to determine a listing or offer price. A Broker Price Opinion (BPO) is often requested by a third party, such as a lender or relocation company, to estimate a property's value for short sales, foreclosures, or portfolio management. Both require the same legal disclaimers in Maryland.

How far back should I go when looking for sold comparables in Maryland?

Ideally, you should look for properties that have sold within the last 3 to 6 months. In rapidly changing markets or rural areas with low turnover, you may need to look up to 12 months back, but older comps require larger adjustments for market shifts.

Why do we include expired listings in a CMA?

Expired listings are crucial because they demonstrate to a seller the price points that the market has actively rejected. This helps ground sellers who may have unrealistic expectations about their property's value.

Do I adjust the subject property or the comparable property?

You always adjust the comparable property. The goal is to make the comparable look exactly like the subject property to determine what the comparable would have sold for if it had the subject's exact features.

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