What is a CMA and what should consumers expect when Realtors are pitching their services? According to Realtor John King of Alhouse King Realty, the basic description of a Competitive Market Analysis is an opinion of value based on recent sales of similar homes in the same neighborhood. Adjustments are usually made for condition, style, market trends and lot size.

CMA's usually contain a range of value of about 5 percent to give the buyer an idea of the going price, but King says the market itself will ultimately determine the value of the home. While the purpose of the CMA is to determine a listing price, Realtors usually include a variety of other information in a presentation to the potential seller.

"In addition to the CMA, a listing presentation should include the marketing program, all listing documentation, a sales plan for how long the process should take to achieve a sale and close escrow as well as an expectation of the net proceeds that the seller could expect from the sale," King said.

Since many sellers are likely to become buyers as part of the process, King also recommends both buyers and sellers should review all the tax implications with a Certified Public Accountant and obtain a pre-approval from a lender for both purchasing and bridge financing if necessary.

"When you are attempting to sell your home and buy another in a tight market, you have to be prepared to complete with other buyers who may not have a home to sell. Discussing strategies with your agent is critical in making this process successful," King said.

Sometimes the expectations of the seller get in the way of the reality of the process of selling a home, says Realtor Kathi Hammill of Alain Pinel Realtors in the Los Gatos North office.

"If you ask a seller the purpose of a listing presentation, he or she will tell you that it is to find out what their house is worth. If you ask Realtors the purpose of a listing presentation, they will tell you that it is to sell the client on the Realtor's services," Hammill said.

She believes an understanding of what the consumer wants is an important part of the process so they can begin to see all the components of the real estate transaction. Hammill always goes over the price data first before sellers get frustrated as they wait to hear what they think the Realtor is there to tell them.

"A successful Realtor will answer a seller's questions first as to market value and then lead into the many other aspects of a home sale. Eventually sellers realize there are many factors other than price that will affect their sale. They will appreciate the Realtor showing them a much bigger picture than they had originally thought they needed," Hammill said.

Realtor Susan Tilling of Coldwell Banker acknowledges there may be many similarities in a Competitive Market Analysis, but the proposed asking price might be different as analyzed by separate Realtors. A Realtor should be willing to point the seller to the two or three most similar properties and be prepared to explain the differences between those properties and the subject property.

"Market analysis is not an exact science," Tilling said. "The sellers should not necessarily choose the agent who proposed the highest price, but should pick the agent whom they feel they would trust the most, with whom they would work most comfortably and whom they believe would work the hardest for them."

"Intelligence, honesty, thoroughness, diligence and experience are uppermost on the list of desirable agent characteristics. The thoroughness with which a CMA is presented to the seller gives an indication of the general thoroughness of the agent in all aspects of the transaction," Tilling added.

The Comparative Market Analysis can be the best report Realtors can give a prospective client who is either buyer or selling says John Leslie, a Realtor with Alain Pinel Realtors in Los Gatos. Describing the CMA as a guide for clients in their decision-making process, he indicated most brokerages have a standard presentation report that advertises the brokerage and the agent.

"The key ingredient in the CMA presentation is how well the agent meets the needs and sometimes the delusions of the client. The clients will listen to three or more presentations and when it's all said and done, they usually choose the agent they like best. Compatibility is really the element in the end, since some agents make terrific presentations but don't get the listing, said Leslie, who seriously recommends sellers consider the compatibility factor when choosing an agent.

"If the client wants an experienced agent, a popular agent, a new agent, they have the choice. Not every agent is the same or has the same knowledge."