What is the purpose of a Comparative Market Analysis (CMA)?

The purpose of a Comparative Market Analysis (CMA) is to estimate a property's value based on recent sales of similar properties in the area. This method involves analyzing data from comparable homes that have recently sold, are currently on the market, or were previously on the market but did not sell, enabling real estate professionals to arrive at a more accurate market value for a specific property. This approach considers factors like location, property size, age, features, and overall condition, providing valuable insights for both sellers and buyers.

While predicting future market trends can be useful for long-term planning, it does not encompass the immediate purpose of a CMA. Similarly, assessing the condition of a property may provide important information, but it is not the primary focus of a CMA; that aspect typically falls into the realm of property inspections or appraisals. Determining rental rates for investment properties does involve market analysis, but it is distinct from a CMA, which is more concerned with sales prices rather than rental income.