What does a Comparative Market Analysis (CMA) indicate?

A Comparative Market Analysis (CMA) is utilized by real estate professionals to determine an appropriate listing or offer price for a property. It is based on the analysis of recently sold properties, active listings, and properties that did not sell in the neighborhood. The goal of a CMA is to give a well-informed estimate of what a property might realistically sell for in the current market conditions, taking into consideration the specific characteristics of the subject property and comparing it with similar properties.

While the CMA does reflect market trends and conditions that can influence pricing, it does not provide an exact property value, as that can vary due to numerous factors, including individual buyer preferences and market fluctuations. Furthermore, current tax assessments may not accurately represent market conditions or the actual value that buyers are willing to pay. Hence, the primary focus of a CMA is to suggest possible listing and offer prices that are competitive and realistic based on comparative data in the market.