What is the purpose of a comparative market analysis (CMA)?

A comparative market analysis (CMA) is a tool used primarily in real estate to estimate the value of a property by analyzing the sale prices of similar properties in the same area. The focus is on comparable sales, or "comps," which are properties that are similar in size, location, features, and condition that have recently sold. By examining these comparable properties, a real estate professional can provide a well-informed estimate of what a property is likely worth in the current market. This process helps sellers set a competitive listing price and assists buyers in making informed offers.

Other potential options such as assessing taxes or preparing legal documentation are functions that are generally outside the direct scope of a CMA. While securing financing might involve determining value, that process typically requires a formal appraisal rather than a CMA. Thus, the primary purpose of a CMA is specifically linked to determining market value based on comparable sales.