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

The purpose of a comparative market analysis (CMA) is to estimate the value of a property based on recent sales of comparable properties. This process involves gathering data on properties that are similar in location, size, condition, and features that have recently sold in the same area. By analyzing these comparable properties, real estate professionals can assess current market trends and provide a well-informed estimate of what a specific property may be worth in the current market.

Conducting a CMA allows agents to provide clients—whether buyers or sellers—with a realistic perspective on property values, which is especially important in guiding pricing strategies for sellers looking to sell their homes and for buyers aiming to make competitive offers. This practice relies heavily on recent, similar property sales to ensure that the estimated value reflects current market conditions and buyer demand.