What is the purpose of a comparative market analysis (CMA)?

The purpose of a comparative market analysis (CMA) is primarily to evaluate a property's value in comparison to similar properties. A CMA provides an estimate of the market value of a property by analyzing recent sales data of comparable properties, often referred to as "comps." This involves looking at factors such as location, size, condition, and features of the properties, allowing real estate professionals to determine a competitive selling price or a fair buying price for a property.

This analytical process is crucial for both sellers and buyers:

• For sellers, it helps in pricing the property appropriately to attract potential buyers while maximizing return on investment.

• For buyers, it ensures that they are making informed offers based on real data about the market.

Other choices do not capture the primary function of a CMA. Estimating the selling price of a specific type of property, analyzing land use for zoning, or assessing the investment potential of a commercial property, while important activities in real estate, do not reflect the core purpose of a CMA, which is distinctly focused on providing a comparative valuation based on recently sold properties in the market.