What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is a vital tool in real estate, primarily used by agents and appraisers to estimate a property's value based on the sale prices of similar properties in the area. This report typically includes data on recently sold properties that are comparable in terms of size, location, condition, and features. By analyzing this information, individuals can make informed decisions regarding pricing, buying, or selling a property.

The CMA process helps to reflect the current market conditions and is particularly useful for setting a competitive pricing strategy. It considers various factors such as the time properties spent on the market, price adjustments, and the final sale prices, providing a comprehensive overview of what buyers are willing to pay in that specific area. This context supports sellers in pricing their homes accurately and assists buyers in making educated offers.