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 by comparing it to similar properties that have recently sold. This method relies on analyzing comparable sales, often referred to as "comps," which are properties that share similar characteristics such as location, size, condition, and features. By examining how much these comparable properties sold for, a real estate professional can provide an informed estimate of the value of the property in question.

This process is key in helping sellers set a competitive asking price, assisting buyers in making reasonable offers, and providing necessary data for appraisals. It reflects current market conditions and demand, making it a vital tool for professionals in the real estate industry. Other options do not encompass the primary objective of a CMA; while evaluating returns, assessing property condition, and analyzing trends can be useful, they do not specifically focus on the valuation aspect integral to a CMA.