What is the main use of a "comparative market analysis" (CMA)?

A comparative market analysis (CMA) is primarily used to estimate a property's value by comparing it to similar properties that have recently sold in the same area. This analysis takes into account various factors including the location, size, condition, and features of the properties being compared. Realtors and appraisers typically conduct CMAs to provide clients with a well-informed estimate of their property’s worth in the current market, which can aid sellers in setting an appropriate listing price and buyers in making competitive offers.

The focus on comparing similar properties is what differentiates a CMA from other tools used in real estate, such as verifying property ownership, which involves checking public records, or setting rental rates, which might rely on different information and considerations altogether. Moreover, while marketing strategies can help attract buyers, they do not directly deal with assessing property value in the way a CMA does. Therefore, the core purpose of a CMA is to reflect the current market conditions accurately and assist in making educated real estate decisions.