What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is a method for valuing a property by comparing it to similar properties, also known as "comparables," that have recently sold in the same area. This approach takes into account various factors such as the properties' features, locations, and market conditions to estimate a fair market value for the subject property.

Using a CMA allows real estate professionals to provide clients with insights about current market trends, pricing strategies, and the competitive landscape. By analyzing data from comparable properties, they can determine an appropriate listing price or assess if an offer is reasonable. This analysis is essential for both sellers and buyers to make informed decisions in the real estate market.

Other options, while relevant to the broader context of real estate, do not define a CMA. For instance, property tax assessments typically utilize different methodologies and are not focused on recent sales of comparable properties. The legal procedure for transferring ownership relates more to the closing process and title transfer, while a graphical representation of market trends might be useful for illustrating market dynamics but does not encapsulate the specific function of a CMA in property valuation.