What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is a technique used to estimate the value of a property by analyzing the recent sales of similar properties in the same area. This method provides a way for real estate professionals to determine a competitive price for buying or selling a home based on actual market activity. By looking at the details of comparable properties, such as size, condition, location, and amenities, a CMA can offer a data-driven estimate that reflects current market conditions, which is essential for both sellers wanting to price their home effectively and buyers looking to make informed offers.

The other options do not accurately describe a CMA. For instance, assessing a property's tax value is typically the role of an appraiser or tax assessor, rather than a CMA focused on market transactions. A comprehensive evaluation of a property's condition pertains more to property inspections, assessing features and defects, rather than market comparisons. Lastly, a report used to argue property assessments in court refers to legal challenges regarding property values, which is distinct from the objective of a CMA that focuses on determining market value through comparison.