What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is defined as an evaluation of similar properties in a specific area to determine market value. This process involves analyzing recently sold properties that are comparable to the subject property, considering factors such as location, size, condition, and features. The goal is to provide a real estate professional or a potential seller with an estimate of what a property might sell for in the current market.

By examining similar properties, the CMA allows agents to gauge the competitive landscape and make informed pricing decisions. Collecting data on comparable properties that have sold recently helps to contextualize the property in question within the local real estate market, enabling a more accurate estimation of its value. This analysis is critical for pricing a home appropriately to attract buyers while also ensuring that sellers do not undervalue their property.

Other options, while related to real estate, focus on different aspects. For example, estimating property taxes pertains to property valuation for tax purposes rather than market analysis, reporting on property condition involves assessing the physical state of a property rather than values based on comparisons, and comparing different types of mortgages relates to financing options rather than determining property value.