Sandeep Pawar
Broker
Home / Sell / Pricing and market analysis
How your home is priced: the market analysis explained
How a comparative market analysis works, and why asking price, market value and sale price are three different numbers. Then how to choose a pricing strategy that fits your market.
The short answer: your home’s market value comes from recent sales of similar nearby homes, adjusted for differences. It is then checked against today’s competing listings and how fast homes are selling. The asking price is a strategy built on that value. The sale price is what a buyer actually agrees to pay. An online estimate or a tax assessment is only a starting point.
Asking price, market value and sale price
Sellers often use these three terms as if they were one number. They are not, and confusing them is the root of most pricing mistakes.
| Term | What it means | Who sets it |
|---|---|---|
| Market value | The most likely price a well-informed buyer would pay today, after normal marketing, based on comparable sales. | The market. A CMA or an appraisal estimates it. |
| Asking price | The number on the listing. It is a marketing decision designed to attract the right buyers and the right number of them. | You, with your agent’s advice. |
| Sale price | The price written in the accepted offer, which may come with conditions, a deposit and a closing date that matter too. | You and the buyer, through negotiation. |
| Assessed value | MPAC’s value for property tax. For 2026 it is still based on 1 January 2016 values. | MPAC. It is not a current market price. |
| Online estimate | An automated figure from public sales data. It cannot see your renovations, basement, lot or condition. | A software model. Treat it as a first look. |
How a comparative market analysis is built
A good CMA is a written argument for a price range. You should be able to see every sale it relies on and every adjustment it makes.
Define the home accurately
The analysis is only as good as the description of your home. Small errors here move the whole range.
What happens
I record the style, above-grade size, bedrooms, bathrooms, lot, parking, basement type and finish, and every major update.
What you do
Walk me through what you have updated, when, and with which permits. Point out anything that needs work.
Documents and people
Your survey if you have one, permits, receipts for roof, windows, furnace and kitchen work, and any basement unit documents.
Watch for
Counting a finished basement as above-grade space. Buyers and appraisers value them differently.
How I help
I see the home in person, because photos hide condition, layout flow and noise from a busy road.
Find the right comparable sales
Comparables should be close in location, type, size and time. Recent sales on your street or in your subdivision carry the most weight.
What happens
I search recent sold homes nearby that match on type and size, then remove the ones that are not truly comparable.
What you do
Tell me about any nearby sales you know of. Neighbours often know details that the listing did not say.
Documents and people
MLS sold data, listing photos and descriptions, and days on market for each sale.
Watch for
Using last spring’s sales in a market that has since changed, or a sale on a much busier street.
How I help
I show you each comparable side by side with your home, so you can see why it was included.
Adjust for differences
No two homes are identical. Each comparable is adjusted up or down to stand in for your home.
What happens
I adjust for features such as size, lot, garage, finished basement, separate entrance, updates and location factors.
What you do
Ask why each adjustment is the size it is. A good agent can explain it in a sentence.
Documents and people
The adjustment grid, kept with the CMA so you can review it later.
Watch for
Adding the full cost of a renovation to the price. Buyers pay for some upgrades much more than others.
How I help
I keep adjustments conservative and explain each one, so the range holds up when buyers and appraisers test it.
Check the competition and the pace
Sold homes tell you what buyers paid. Active listings tell you what buyers can choose from right now.
What happens
I review active, conditional and expired listings near you, and how long homes like yours are taking to sell.
What you do
Visit an open house or two nearby if you can. It is the fastest way to see your competition.
Documents and people
Active and expired listings, average days on market, and recent sale-to-list price results.
Watch for
Ignoring expired listings. They show you the prices buyers refused to pay.
How I help
I tell you whether your market currently favours buyers or sellers, and what that means for timing. See buyers’ vs sellers’ markets.
Turn the range into a strategy
The CMA gives a value range. The listing price is a choice within that range, made to suit your goals and the market.
What happens
We agree an asking price, an offer approach and the evidence that would make us revisit the price.
What you do
Decide what matters most: top price, speed, certainty, or a specific closing date. Set your bottom line privately.
Documents and people
The written CMA, a net-proceeds estimate and the listing agreement.
Watch for
Picking a price because a neighbour got it, or because you need a certain amount for your next home.
How I help
I give you a recommendation, the reasons for it, and the risks of each alternative. Then you decide. Start with an instant estimate.
Features that commonly move value in the GTA
The size of each adjustment depends on the neighbourhood and the market at the time, so I do not use fixed amounts. These are the features I check on every Brampton, Mississauga and Caledon home.
| Feature | Why buyers care | What I verify |
|---|---|---|
| Basement and separate entrance | Extra living space, and for some buyers rental income. | Whether a second unit is registered or permitted with the city, and its fire and building approvals. |
| Lot size and backing | Privacy, garden space, and future flexibility. | The survey, whether the lot backs onto a ravine, park, school or busy road. |
| Parking | Many buyers need room for more than one car. | Garage size, driveway width and any parking rules. |
| Major systems | Buyers discount for a roof, furnace or windows near the end of their life. | Ages and receipts, and any rental contracts for the water heater or furnace. |
| Kitchen and bathrooms | The rooms buyers notice most in photos and showings. | Quality of the work, not only its age. |
| School and transit access | Families and commuters pay for convenience. | School boundaries with the board, and distance to GO, highways and transit. |
Want the comparable sales for your street?
What’s my home worth?Three pricing strategies, and when each fits
| Strategy | How it works | Fits when | Main risk |
|---|---|---|---|
| At market value | List close to where the comparables say the home will sell, and invite offers at any time. | Balanced markets, and most homes most of the time. | Little, if the analysis is sound. Buyers may still negotiate. |
| Below value, with an offer date | List under the expected value and hold offers to a set date, hoping for competing offers. | Strong demand, low inventory, and a home with broad appeal. | If competition does not appear, you may face one offer near the low list price. |
| Above value, room to negotiate | List higher and expect buyers to negotiate down. | Rarely. Sometimes for unique properties with few comparables. | Fewer showings, more days on market, and price cuts that invite lower offers. |
Whichever strategy you choose, you decide in advance whether you will share offer details with competing buyers. Under Ontario’s rules, your brokerage must tell each buyer who has made a written offer how many competing written offers there are. It shares their substance only if you direct it. More in comparing offers.
General information, not legal advice. A real estate lawyer can explain how the offer rules apply to your sale.
Reading the market’s reply in the first weeks
- Plenty of showings but no offers: the home is being compared, and something about price or condition is losing.
- Few showings: the listing is not earning visits. Check price first, then photos and description.
- Offers well below asking: buyers see the comparables differently. Ask their agents which sales they used.
- Several buyers asking for the disclosure package: competition may be building. Hold steady.
- New competing listings priced lower: your position has changed, even if your home has not.
Before we set the price
- A walkthrough of the whole home, including the basement, garage and yard
- A list of updates with dates, receipts and permits
- Your mortgage payout estimate, so we can work out your net proceeds (see selling costs)
- Your ideal and latest acceptable closing dates
- Your bottom line, kept private between us
- A decision on any repairs or staging before listing (see preparing your home)
Pricing mistakes I see most often
- Pricing to what you paid, what you owe, or what you need for the next home. Buyers do not see those numbers.
- Treating the MPAC assessment as a current value.
- Choosing the agent who quotes the highest price, without asking for the comparable sales behind it.
- Waiting too long to respond when the market’s reply is clear.
- Counting the whole cost of a renovation as added value.
More in seller mistakes to avoid, or go back to the full selling plan.
Questions sellers ask about pricing
What is a comparative market analysis (CMA)?
A CMA is a written estimate of what your home is likely to sell for. It is built from recent sales of similar nearby homes, the homes competing with yours today, and how fast homes are selling. Each comparable is adjusted for differences such as size, lot, parking, finishes and basement.
Is a CMA the same as an appraisal?
No. An appraisal is prepared by a designated appraiser, usually for a lender, and follows appraisal standards. A CMA is prepared by a real estate agent to set a listing strategy. Both rely on comparable sales, but they serve different people and purposes.
Why is my MPAC assessment different from my home’s value?
Ontario property assessments for 2026 are still based on values as of 1 January 2016, according to MPAC. They are a tax base, not a current price. Use recent comparable sales to understand today’s market value.
Should I list high and come down later?
Usually not. In my experience, buyer interest is strongest in the first weeks, and an overpriced home tends to collect showings for the homes that are priced right. Price cuts later can signal a problem and invite lower offers.
Should I price low to start a bidding war?
It can work when demand is strong and inventory is tight, but it is a strategy with risk. If competing offers do not arrive, you may face a single offer near your asking price. Decide your real bottom line before you choose this approach.
How many comparable sales do you use?
As many genuinely similar recent sales as the area supports. In a subdivision with many similar homes there may be several from the last few months. For a unique property I widen the search and explain each adjustment.
How often should the price be reviewed?
I review showings, feedback, online activity and new competing listings every week. If the evidence shows the price is out of line, we discuss it with the numbers in front of us rather than waiting.
Sources
- MPAC: property assessment notices (2026 valuation date remains 1 January 2016)
- Ontario e-Laws: O. Reg. 567/05 under the Trust in Real Estate Services Act, 2002 (section 22.7, competing offers)
- CREA: Canadian home sales pull back in September (released 16 October 2026)
- TRREB: Market Watch
See the comparable sales behind your number
Start with an instant estimate, then I will walk your home and prepare a written CMA with every sale and adjustment shown.