What does a comparative market analysis (CMA) estimate?

A comparative market analysis (CMA) is primarily utilized to estimate a property's value by comparing it to recently sold properties that are similar in characteristics, such as size, location, and amenities. This method provides a more accurate valuation by taking into account current market trends and the selling prices of comparable properties, which helps determine what price a seller might expect to receive or what a buyer might be willing to pay for a similar property.

CMAs are a vital tool in real estate as they consider various factors such as the condition of the property, the specifics of its location, and overall market conditions, offering a well-rounded view of potential market value based on real, recent sales rather than just theoretical calculations.