What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is an evaluation of similar properties that helps determine the market value of a specific property. This process involves analyzing recent sales data, property features, and current market trends for homes that are comparable in size, location, and condition. By assessing how these comparable properties have performed in terms of sales prices, the CMA helps sellers set competitive listing prices or assists buyers in making informed offers.

The qualities that define a good CMA include looking at active listings, pending sales, and recently sold properties to create a reliable snapshot of the market conditions. This detailed analysis is crucial for real estate professionals to provide their clients with accurate assessments of property values, ensuring they make sound financial decisions based on objective data rather than subjective opinions.

In contrast, other options focus on different aspects of real estate. For example, construction costs pertain more to estimating expenses related to building or renovating properties, while reviewing legal documents relates to the ownership and title of a property. A marketing strategy, on the other hand, involves techniques to promote and sell properties rather than assessing their value through comparative analysis.