What is the primary purpose of a CMA (Comparative Market Analysis)?

The primary purpose of a Comparative Market Analysis (CMA) is to estimate a property's value based on recent sales of similar properties in the area. This process involves analyzing various factors such as the prices at which comparable homes have sold, their characteristics, and the current market conditions. By gathering and evaluating this data, real estate professionals can arrive at a realistic value for a property, helping sellers set a competitive listing price and assisting buyers in making informed offers.

While other options may seem relevant, they serve different functions. Comparing properties side by side provides useful information but does not solely focus on valuation. Determining the best marketing strategy is an important aspect of real estate but is more strategic than analytical in value estimation. Assessing property tax values is a separate process often conducted by tax appraisers and isn't directly related to the methodology used in a CMA for real estate transactions.