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

The primary purpose of a comparative market analysis (CMA) is to give an estimation of a property's value. A CMA involves evaluating similar properties in the same area, often referred to as "comps," to assess how a specific property compares in terms of pricing, features, and market conditions. This analysis helps real estate agents and their clients determine a competitive listing price or an appropriate offer price for buyers.

In the context of real estate, pricing a property accurately is critical for ensuring it sells in a reasonable time frame and for the best possible price. The CMA considers factors such as square footage, condition, location, and recent sales data. This method for estimating value is especially useful in a fluctuating market, helping to adjust for current trends and economic conditions.

Attracting potential buyers, creating legal contracts, or determining property tax obligations are important aspects of the real estate process, but they do not define the primary function of a CMA. The CMA specifically focuses on property valuation by providing a thorough analysis of comparable sales and listings.