What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is an estimate of a property's value based on recent comparable sales in the area. It is a key tool used by real estate professionals to assess property values by analyzing the sale prices of similar properties nearby that have recently sold. The CMA takes into account various factors such as the size, location, and features of the properties, which helps to provide a reasonable estimate of what a property may sell for in the current market.

This approach is particularly valuable in helping sellers set a competitive listing price and assisting buyers in determining a fair offering price. By utilizing recent sales data and comparing it with the subject property, realtors can make informed recommendations based on current market conditions. The accuracy of a CMA relies heavily on the relevance and recency of the data being analyzed, making it a practical and essential part of the real estate sales process.

In contrast, methods such as determining rental rates or legal property disclosures do not align with the defined purpose of a CMA, nor does a government appraisal fit this description. A CMA specifically focuses on valuation for buying and selling properties, making it distinct from other processes related to real estate.