What is a "comparative market analysis" (CMA) used for in real estate?

A comparative market analysis (CMA) is primarily used to determine the value of a specific property by comparing it to similar properties that have recently sold in the area. This process involves analyzing various factors such as the location, square footage, number of bedrooms and bathrooms, and the overall condition of the properties being compared. By evaluating these similarities and differences, real estate professionals can provide a more accurate estimate of a property's market value. This information is crucial for sellers in setting an appropriate listing price and for buyers to make informed offers based on market conditions.

In contrast, assessing potential mortgage rates, developing marketing strategies, or evaluating buyer qualifications involves different tools and analyses that do not focus specifically on property valuation through comparative analysis. Thus, understanding the nature and purpose of a CMA is essential for anyone involved in real estate transactions.