A comparative market analysis (CMA) is a tool used by real estate professionals to help determine the fair market value of a property. It involves comparing the subject property to similar properties that have recently sold in the same area, also known as comparables or comps. A CMA takes into account a variety of factors, including the size, age, location, and features of the subject property and the comparables. The goal is to identify the market trends and establish a reasonable price range for the subject property based on the sale prices of the comparables.
A CMA can be a useful resource for both buyers and sellers in the real estate market. For sellers, it can help them determine a realistic asking price for their property, while for buyers, it can provide valuable information on the current market value of a property they are considering purchasing. It is important to note that a CMA is not a formal appraisal and should not be used as the sole basis for determining the value of a property. It is just one tool among many that can be used to help make informed decisions in the real estate market.