What is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is primarily a tool used by real estate professionals to determine the estimated value of a property based on the sale prices of similar properties in the area, often referred to as "comps." This method involves analyzing various factors such as location, size, condition, and features of homes that have recently sold or are currently on the market. By examining these comparable properties, real estate agents can provide buyers and sellers with a more accurate representation of a property's market value, helping them make informed decisions regarding pricing, buying, or selling.

The focus of a CMA is distinctly on property valuation rather than advertising, rental comparisons, or financial analyses. It specifically centers on the real estate market and assists in establishing a fair market price, which is crucial for effective negotiations and transactions in real estate.