What Is a CMA? A Los Gatos Market Guide

Thinking about pricing your Los Gatos home or making a smart offer, but not sure where to start? You are not alone. In a market where two similar houses a block apart can trade at very different prices, you need more than a rough estimate. This guide explains what a Comparative Market Analysis is, how it is built, and which Los Gatos micro‑market details can move value. By the end, you will know how to read a CMA with confidence and what to ask for when you request one. Let’s dive in.

What a CMA is

A Comparative Market Analysis is a pricing estimate prepared by a real estate professional. It uses recent local sales and active or pending listings to suggest a realistic value range and list price strategy. It is not an appraisal. An appraisal is a separate report prepared by a licensed appraiser, often required by lenders. For a deeper overview of how practitioners approach pricing, see the NAR guidance on CMAs and pricing strategy.

In Los Gatos, a well‑built CMA matters because the market moves quickly and small location differences can have a big impact. A tailored CMA gives you context, from recent neighborhood sales to current competition and time on market.

What a CMA includes

A complete CMA typically contains:

• Subject property summary: address, APN, lot size, living area, rooms, age, systems, notable upgrades, and photos.
• Market overview: recent price direction, active inventory, days on market, and absorption.
• Comparable sets: closed sales for value, pending for momentum, active for competition, and sometimes expired or withdrawn listings for downside context.
• Comparable details: address, list and sale price, sale date, days on market, concessions, lot and living area, condition notes, and photos.
• Adjustments and rationale: dollar or percentage adjustments for differences in size, lot usability, condition, view, amenities, and location, plus a short explanation of how each was derived.
• Value range and recommended list price: a low to high band and a single suggested price with strategy notes.
• Net proceeds or affordability: seller net sheet or buyer payment notes based on typical closing costs.
• Supporting data and caveats: comp date ranges, market changes to watch, and limitations that could affect the estimate.

How agents build CMAs

Data sources that matter

A strong CMA relies on verified data and local context:

• Local MLS for active, pending, and sold details with agent notes and days on market.
• Santa Clara County Assessor for parcel data, APN, and lot size verification.
• School and boundary research using official district resources, such as Los Gatos Union School District and Los Gatos‑Saratoga Joint Union High School District websites.
• Hazard and risk context from Cal Fire’s Fire Hazard Severity Zone viewer and FEMA’s Flood Map Service Center.
• Zoning and amenities via the Town of Los Gatos Planning Department and Parks, Trails, and Open Space pages.
• Walkability context from public tools like Walk Score’s Los Gatos page.

Always verify public data with MLS and county records when possible. Public aggregators can occasionally misstate square footage or status.

Comp selection basics

Comp selection is both art and science:

• Time frame: in faster segments, prioritize the last 3 to 6 months of closed sales. In slower segments, widen to 6 to 12 months and note time adjustments.
• Geography: start with the same street, subdivision, or micro‑neighborhood. Los Gatos shows meaningful shifts over short distances, so local fit matters.
• Physical similarity: match bed and bath count, living area, lot size and usability, age, layout, and amenities.
• Status mix: use closed sales for value, pending for direction, and active listings for competition. Include expired listings when helpful to show pricing ceilings.
• Sample size: aim for 3 to 6 well‑matched sold comps, adding more when the area is highly varied.

Adjustments and rationale

Adjustments translate differences into dollars so you can compare apples to apples. Common methods include:

• Paired sales: identify two recent sales that differ primarily by one feature, such as a renovated kitchen or an added bath, then derive the value impact.
• Dollar per square foot: apply locally supported price per square foot ranges from similar recent sales.
• Percentage adjustments: use a percentage for location or lot premiums when land value differences are broad.

Key items to consider for adjustments include living area, lot usability, bedroom and bathroom count and functionality, condition and upgrades, views, pools, ADUs, parking, usable yard, and any school assignment differences. A clear CMA explains the reasoning behind each adjustment.

Presenting the result

Good CMAs present a value range and the pricing strategy behind it. The range is often bracketed by a nearby inferior comp and a nearby superior comp. The final recommendation reflects timeline goals and risk tolerance, such as pricing for maximum exposure and multiple offers or aiming for a stable sale with fewer showings. Strong CMAs also document limitations, especially when sample sizes are small or the property is unique.

Los Gatos factors that move value

Lot and usable yard

Lot size in Los Gatos varies widely. Downtown and historic pockets often have smaller, walkable lots, while foothill and hillside areas offer larger parcels. Buyers typically value larger, usable yards that support outdoor living, privacy, pools, and ADUs. Steep terrain or heavy tree cover can reduce usability even on larger parcels. A thorough CMA documents lot size, slope, setbacks, any hillside restrictions, and easements. Compare against comps with similar usable yard, not just raw acreage.

Walkability and amenities

Walkability can be a real driver of demand. Proximity to the downtown core along North Santa Cruz Avenue, everyday shops, and trails like the Los Gatos Creek Trail often reduces days on market. Homes near parks and open space can earn attention from lifestyle buyers. When reviewing a CMA, look for distance to downtown, park access, sidewalk connectivity, and noise or traffic notes. For local amenities and trail maps, check the town’s Parks, Trails, and Open Space resources and a general walkability snapshot from Walk Score.

Condition and upgrades

Condition is one of the largest price drivers in Los Gatos. Many homes are older, and renovation levels vary. Modernized kitchens and bathrooms, opened floor plans, and updated systems can support stronger pricing. Deferred maintenance, roof or foundation concerns, and dated finishes typically reduce buyer confidence. In hillside locations, fire‑hardening measures and deck condition matter. A solid CMA shows recent improvements, system age, and comparable finish levels in the comp set.

School boundaries

Los Gatos neighborhoods can be split by district lines, and exact school assignment can influence buyer pools. To evaluate a CMA, verify the subject’s school assignment and match comps accordingly. Official district pages, such as Los Gatos Union School District and Los Gatos‑Saratoga Joint Union High School District, are the best places to confirm maps and boundary notes. Ratings sites can add context, yet boundaries and offerings change over time, so always confirm with official sources.

Fire and flood risk

Risk context affects both marketability and insurance. Hillside areas can carry elevated wildfire risk. Buyers and sellers should consult Cal Fire’s Fire Hazard Severity Zone viewer and check FEMA’s Flood Map Service Center for potential flood zones. A careful CMA notes these factors when comparing the subject to comps.

Commute and services

Proximity to highway access points, such as SR‑17 and I‑280, can influence buyer interest and showing activity. Access to municipal services, zoning rules, and whether an HOA is present may also affect perceived value. For zoning or permit questions, refer to the Town of Los Gatos Planning Department.

A simple CMA checklist

Use this quick checklist to understand how a data‑driven CMA comes together:

1. Define the subject: APN, lot size, living area, bed and bath count, layout, and condition.
2. Define the market area: same street or subdivision, school boundaries, and walk‑shed to downtown or parks.
3. Pull recent closed sales first, then add pending for direction and active listings for competition. Consider expired listings for ceiling context.
4. Choose comps closest in time, location, and physical attributes. Document why each comp made the cut.
5. Calculate unadjusted price per square foot, then apply paired adjustments for major differences such as lot usability, condition, and view.
6. Reconcile to a value range and a pricing recommendation that matches your timing and risk goals.
7. Disclose limitations, and plan next steps such as inspections, a future appraisal, or an updated CMA if new sales close.

Pricing strategy examples

Here are three common ways to align pricing with your goals:

• Market‑match pricing: list near the midpoint of the adjusted value range to attract broad interest and allow for normal negotiation.
• Exposure‑first pricing: list just below the likely value to increase traffic and encourage multiple offers, usually with a shorter review timeline.
• Confidence‑premium pricing: list at the upper end of the range when the home outperforms comps on condition, walkability, or lot usability and you have the time to wait for the right buyer.

The right choice depends on current inventory, your timeline, and how the subject compares to the best local comps.

When to update your CMA

In a fast‑moving market, recency is critical. Update your CMA when new comps close nearby, when a relevant pending sale records, or when inventory shifts meaningfully. Unique properties with limited comps often require more frequent check‑ins and a stronger qualitative explanation in the CMA.

Your next step

If you are preparing to list or getting ready to write an offer, request a CMA that is built from current MLS data and grounded in your micro‑neighborhood. Ask for the comp set, the adjustment logic, and the pricing strategy, then decide what aligns with your timeline. For a research‑driven, local perspective tailored to Los Gatos, reach out to Georgia Phillips to schedule a personalized consultation.

FAQs

What is the difference between a CMA and an appraisal?

• A CMA is an agent’s pricing analysis using local comps, while an appraisal is a lender‑grade report prepared by a licensed appraiser with a standardized method.

How many comparable sales do I need for a reliable CMA?

• There is no fixed number, but 3 to 6 well‑matched closed sales plus active and pending listings usually provide a solid foundation.

How recent should comparable sales be for Los Gatos pricing?

• In faster segments, focus on the past 3 to 6 months; in slower periods, widen to 6 to 12 months and note any time adjustments.

Why can two CMAs on the same home be different?

• Differences in comp selection, time windows, adjustment methods, and local market read can lead to different conclusions, so transparency matters.

How do school boundaries show up in a CMA?

• A careful CMA confirms the subject’s assignment and selects comps within the same boundary when possible, referencing official district resources for accuracy.