If you’ve ever calculated your home's value based on the sale price of your neighbor's property, you’re not alone. Sometimes, this can serve as a reasonable starting point—but more often than not, it is likely to be inaccurate. Typically, the estimated value tends to be overly optimistic.
Some real estate experts attribute optimistic home valuations to emotional and psychological factors, often using terms such as Emotional Attachment, Anchoring Bias, Optimism Bias, and financial need. And yes, these influences certainly play a role in how sellers perceive value. But in my experience, the number one reason homeowners overestimate their home’s value is a lack of access to accurate, detailed information.
In Texas, consumers can only see what homes are listed for, not what they actually sell for—and certainly not the net sales price after seller concessions. This limited visibility makes it extremely difficult to arrive at a realistic number, even for savvy sellers. However, I have noticed that sellers, particularly more sophisticated homeowners, tend to approach the process with a logical perspective. Their estimates might be a bit optimistic, but they are usually open to professional insights when presented with solid data.
How to Get a Good Estimation of Value
If you're considering selling—or simply curious about your home's current market position—the best way to begin is with a Comparative Market Analysis (CMA) from a licensed Texas real estate agent. Agents usually offer CMAs at no cost and with no obligations, and the process is considerably more thorough than a Zestimate or what your neighbor’s cousin said at the last BBQ.
My suggestion? Be upfront about your intentions. Whether you're simply curious or planning to list in two months or two years, agents value honesty. Our aim is to offer support, even if you're not planning to sell. Real estate thrives on referrals, and we know that if we act diligently and serve you well, you might recommend us to a friend.
What is a CMA?
A Comparative Market Analysis (CMA) is a professional estimate of your home's market value based on recent sales of similar properties in your area. Unlike online estimates, a CMA factors in nuances like property condition, upgrades, location within a neighborhood, and even current market trends. It’s an important data-driven tool used to guide pricing strategies and set realistic expectations.
A CMA is not an appraisal, but it is the closest thing you can get without paying for one. And for most homeowners, it’s more than sufficient to get an accurate read on what buyers might be willing to pay.
How a CMA is Created
The CMA process isn’t just a plug-and-play spreadsheet. It requires local knowledge, professional judgment, and a deep dive into data. Here’s a breakdown of how it works:
-
Property Research: The agent starts by reviewing your home’s specifics—square footage, number of beds and baths, lot size, age, features, upgrades, and condition.
-
Selecting Comparables (Comps): Next, the agent identifies recently sold homes that are most similar to yours in size, location, and condition. Ideally, comps are within the last 3-6 months and located within a close radius of your property.
-
Adjusting for Differences: Since no two homes are exactly alike, agents make dollar-value adjustments for differences such as whether or not they have a pool, the number of bedrooms and bathrooms, and the condition of the home, among others.
-
Analyzing Market Conditions: Current supply and demand, local days on market, and neighborhood trends all affect pricing.
-
Drafting the Report: The final CMA includes low, mid, and high value ranges, details on each comparable property, and the agent’s interpretation of where your home fits in.
My Process
When someone contacts me for a home valuation, I tailor my approach based on what I know and what I don’t yet know.
-
If I haven’t seen the home in person, I’ll start with a preliminary CMA. This provides a range of values based on comps, with notes on where further detail is needed.
-
When I’ve had the opportunity to tour the home, I deliver a detailed CMA that reflects adjusted comps and considers the home’s unique selling points. This version includes:
-
Estimated sales price
-
Suggested list price
-
Estimated Net Proceeds (after commissions, closing costs, and seller concessions)
-
My goal is to give you clarity—not just about what your home is worth but also about what you can walk away with at closing.
Ready for Clarity? Let’s Replace That Napkin Number with a Real Pricing Strategy
Getting an accurate valuation of your home isn’t just about math—it’s about strategy. If you’re serious about selling, pricing your home correctly from the start is arguably the most important decision you’ll make. The good news? You don’t have to guess.
If you live in the Greater Dallas/Collin County area and you're even thinking about selling—or just want a second opinion on that napkin estimate—let’s talk. I’ll provide you with a professional, data-backed valuation tailored to your specific property and market. No pressure, no gimmicks. Just the clarity you need to make informed decisions.
Reach out anytime. I’m here to help.
About the Author
Edwin Jones is a Private Client Real Estate Agent serving in the North Dallas Tollway corridor, from Park Cities to Plano to Prosper. An avid investor and serial entrepreneur, he holds an MBA and a bachelor's degree in Economics from Southern Methodist University. With a deep understanding of luxury home design, finance, marketing, and real estate investing, Edwin brings a well-rounded, strategic perspective to every client interaction. His writing reflects the same level of intentionality: starting with a compelling premise, organizing key insights, weaving in personal experience, and using AI to generate a first draft, which he then polishes through editing, fact-checking, and plagiarism screening. His commitment to excellence ensures that the content is informative and trustworthy for anyone navigating the world of luxury real estate.
