What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is primarily an evaluation of similar properties to determine a property's value. This process involves analyzing recently sold properties, also known as "comps," that are similar in characteristics such as location, size, condition, and features. By comparing these properties, a real estate professional can establish a realistic market value for a specific property, which is crucial for pricing it appropriately in the current market.

The importance of a CMA lies in its ability to provide insights into local market trends, helping sellers set competitive asking prices and assisting buyers in understanding whether a property is fairly priced. This analytical approach is essential for informed decision-making in real estate transactions, ensuring that clients receive accurate valuations based on comprehensive market data.