You've picked great comps. You've applied time adjustments from your market trend analysis. Your sold comps are from the right market area and bracket your listing properly.
But when you look at your comparable range, it's still $100,000 wide on a $550,000 listing. One comp is 3,200 square feet with a 2-car garage. Another is 3,800 square feet with a 3-car garage. You know they're not directly comparable to your 3,500 square foot listing with a 3-car garage - but your CMA treats them as if they are.
This is the problem with most CMAs: no adjustments for property differences.
In today's market where buyers have options and sellers are price-sensitive, details matter more than ever. That extra 300 square feet or additional garage bay isn't just a nice-to-have - it's a quantifiable difference in value that your pricing needs to account for.
Let's fix this.
When inventory was tight and buyers were desperate, you could get away with rougher comparables. Buyers overlooked differences because they had limited choices.
That's not today's market.
Now, buyers are comparing your listing against multiple options. If your 3,500 square foot home is priced the same as a 3,800 square foot home down the street, buyers will question why. Or worse - they'll just buy the bigger one.
Accurate adjustments help you:
This is the most common issue I see. A CMA with five comparables ranging from $500,000 to $650,000, with no adjustments for the fact that some are significantly larger, have extra garages, or are in better condition.
The agent just lists the comps and picks a number somewhere in that range, hoping it works out.
"An appraiser once told me to use $35 per square foot for size differences and $5,000 per garage."
These might have been accurate for that specific property at that specific time. But adjustment amounts vary significantly based on price point and market area.
A $35 per square foot adjustment might be reasonable for a $350,000 home, but way too low for a $1.5 million property. Using the same numbers everywhere means your adjustments are wrong most of the time.
Some agents look at the median price per square foot ($200, for example) and use that as their adjustment amount for size differences.
If a comp is 100 square feet larger, they deduct $20,000 from its sale price.
This dramatically overestimates the adjustment because that $200 per square foot represents ALL aspects of the home - the land, the garage, the kitchens, bathrooms, finishes, everything. Not just the additional square footage.
In reality, the marginal value of additional square footage is only a portion of the total price per square foot. Much less than agents think.
The key to making accurate adjustments is understanding that a home's value comes from multiple contributory components, not just the overall price per square foot.
Here's the approach that works:
A home's total value comes from several main categories:
Each of these components contributes a different percentage of the overall value, and those percentages vary significantly based on:
For example, the contributory value of garage space in a $300,000 neighborhood is very different from a $1.5 million neighborhood. The same is true for finished basement value, lot size, and every other component.
This is why using the same adjustment numbers for every property doesn't work - the market determines value, and different markets value features differently.
Run your comp search in the MLS for your market area. Most MLS systems will show you the median or average price per square foot for your search results.
This is your starting point - but remember, this number represents ALL components of value combined. Breaking it down into the individual contributory parts is where accuracy comes from.
This is where most agents struggle - and honestly, where the line between a CMA and an appraisal gets blurry. Determining accurate contributory values requires statistical analysis of your specific market area and price point.
The key categories that almost always need adjustments:
Additional categories that may need adjustments depending on the property:
Whatever adjustment amounts you use, you need to test them to verify they're reflecting market reality.
Here's the key question: Does your adjusted range shrink compared to your unadjusted range?
Let's say your unadjusted comps range from $500,000 to $600,000 - a $100,000 spread.
When you apply square footage adjustments, that range should shrink. Maybe to $520,000 to $580,000. It might not shrink dramatically with just one adjustment category, because you still need to adjust for garage, condition, time of sale, and other factors.
But each individual adjustment should bring your range closer.
The range doesn't shrink at all → Your adjustment amount is too small or you're adjusting the wrong category
Your comps flip-flop → If your highest comp drops below your lowest comp after adjustments, your adjustment is too large. They shouldn't cross over each other. This means you've overcorrected and need to reduce your adjustment amounts.
The range shrinks but doesn't align with pending sales → Go back to your time adjustments or check if you're missing a key adjustment category. Your adjusted sold comps should fall reasonably in line with what's currently going under contract.
The verification step is critical. You're testing whether your adjustments reflect reality. If your adjusted sold comps don't align reasonably well with what's currently going under contract, something needs adjustment.
So where do you get accurate adjustment amounts for your specific market and property?
PropertyBrain is building a free tool (launching January 2026) that will provide estimated adjustment values for the top neighborhoods in the Colorado Springs metro area. This will give agents market-specific starting points based on actual data analysis for different price points and neighborhoods. Join the interest list here to be notified when it launches
Professional appraisals provide property-specific statistical analysis and can help you understand the adjustment methodology for similar properties in your market area. When you're working on transactions, pay attention to how appraisers calculate and support their adjustments.
Working with appraisers on your listings can give you insight into what adjustments are appropriate for different market segments. Don't hesitate to ask questions about methodology when you receive appraisal reports.
The important thing is understanding that accurate adjustments require market-specific analysis - not just applying the same numbers to every property.
Even with the best tools and understanding, there are situations where professional appraisal is worth the investment:
Limited or difficult comparable data → If you have very few sales in your market area or the properties are highly varied
Unique or custom properties → When standard adjustment categories don't capture what makes the property special or different
Wide price ranges even after adjustments → If you've made all reasonable adjustments and your range is still 10%+ of the value, you're dealing with complex valuation questions
High-stakes pricing decisions → When the seller has specific financial needs or timeline pressures that make accurate pricing critical
Appraisal concerns → If you're worried the listing might not appraise, getting an appraisal upfront can save everyone time and headaches
A professional appraisal provides statistical analysis specific to the property, accounts for nuances you might miss, and gives you (and your seller) confidence in the pricing.
Most CMAs fail because they don't adjust for property differences. In today's market where buyers have options, that's a recipe for overpriced listings that sit or underpriced listings that leave money on the table.
The framework for better adjustments:
Accurate adjustments require market-specific analysis. Using tools designed for this purpose (as noted above) or working with an appraisal office like ours can help you gain the specific market knowledge you need for different neighborhoods and price points.
Your sellers deserve pricing backed by data, not guesswork. And in today's market, buyers will absolutely notice the difference.
