What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is a report that analyzes and compares a specific property to other similar properties in the same area to help estimate its market value. The CMA typically considers various factors, including the sale prices of comparable homes (also known as "comps"), the features of each property, and current market conditions. By evaluating how similar properties have performed in the market, real estate professionals can provide informed pricing strategies for sellers or buyers.

This focused approach allows for an accurate assessment based on real-time data and provides insights that are crucial for making informed decisions in real estate transactions. Understanding the local market dynamics and comparing properties ensures that a property is appropriately priced, which can lead to quicker sales or more favorable purchase terms.