What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is an estimate of market value based on recent comparable sales. This process involves analyzing the selling prices of similar properties in the same area that have been sold recently, allowing real estate professionals to gauge the market and suggest a realistic price for a property. The key aspect of a CMA is its reliance on actual sale prices rather than just market trends or automated estimates.

This approach allows agents to provide informed pricing strategies for sellers and better understand buyer expectations, making it a crucial tool in real estate transactions. Unlike an appraisal, which requires a licensed appraiser and follows strict methodologies, a CMA is more accessible for real estate agents and often tailored to specific neighborhoods or property features.

Such detailed analysis helps in making more accurate predictions of a property's potential sale price in the current market, benefiting both sellers looking to price their homes appropriately and buyers wanting to make valid offers.