What is “comparative market analysis” (CMA)?

"Comparative market analysis" (CMA) refers specifically to an evaluation of similar properties in a given area to determine the market value of a property. This process involves analyzing recent sales data, active listings, and properties that did not sell in order to gauge the current market conditions and set a competitive price for a property.

The core purpose of a CMA is to provide sellers and buyers with a realistic perspective on property values based on relevant comparisons, as it takes into account factors such as location, size, amenities, and current market trends. By evaluating comparable properties, real estate professionals can make informed decisions and recommendations on pricing strategies, which are essential for effective marketing and successful transactions in real estate.

The other options do not accurately capture the essence of a CMA. While assessing local real estate agents and analyzing economic conditions may be relevant to broader market understanding, the CMA's focal point is narrowly on the valuation through the comparison of similar properties. Similarly, a report on property sales history does not encompass the current market analysis required for accurately pricing a property today.