What is the primary objective of a comparative market analysis (CMA)?

The primary objective of a comparative market analysis (CMA) is to determine a property's value based on recent sales. A CMA involves analyzing comparable properties that have recently sold in the same area to provide a realistic estimation of what a property might sell for in the current market. This analysis considers various factors including the characteristics of the properties, their sale prices, and market trends to ascertain an accurate and fair market value.

This method is crucial for real estate professionals and sellers when making decisions about pricing a property for sale. By looking at comparable sales, realtors can make informed recommendations to their clients, ensuring the property is competitively priced, which can lead to quicker sales and successful transactions. This comprehensive approach gives sellers and buyers a clearer understanding of the market landscape, directly supporting the overarching goal of effective real estate practice.