What is the "Comparative Market Analysis" (CMA) used for?

The Comparative Market Analysis (CMA) is primarily utilized as a tool to estimate the value of a property by analyzing similar properties (often referred to as "comps") that have recently sold in the same area. This process involves looking at various factors, including the location, size, age, and amenities of comparable properties to find a reasonable market value for the property in question.

This approach helps real estate agents and brokers to provide informed insights and set competitive pricing strategies for sellers. By understanding how similar properties have performed in the market, real estate professionals can give accurate property valuations that reflect current market conditions.

While analyzing market trends and predicting future values are important aspects of real estate, those are broader uses that extend beyond the immediate function of a CMA. Similarly, while determining rental prices and calculating closing costs are relevant activities in real estate, they are not the primary focus or purpose of a CMA, which centers on estimating property values based on comparative analysis.