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

The purpose of a comparative market analysis (CMA) is to evaluate the value of a property based on similar, recently sold properties. This process involves analyzing properties that are comparable in terms of location, size, condition, and features. By examining the sale prices of these similar properties, real estate professionals can establish a realistic estimate of the current market value of the property in question.

A well-conducted CMA helps sellers set a competitive listing price, which can attract potential buyers, and assists buyers in making informed offers, preventing overpayment. The strength of a CMA lies in its reliance on actual market data, ensuring that the valuation reflects the current market dynamics.

The other options focus on different aspects of real estate that do not pertain to the primary function of a CMA. For example, finding financing options is related to funding a purchase rather than assessing property values. Determining rental prices pertains to a different market analysis focused on rental income potential rather than sale prices. Identifying investment opportunities involves a broader market analysis strategy, which is not the specific aim of a CMA.