What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is a report that evaluates a property by comparing it to similar properties within the same area, known as comparables or "comps." This analysis is aimed at estimating the property's current market value, which is essential for pricing it appropriately for a sale or a purchase. The CMA takes into account various factors, including recent sales prices of comparable properties, current listings, and the condition and features of the property being analyzed.

This method is crucial for real estate agents and brokers as it provides a data-driven basis for pricing decisions and helps ensure that properties are listed at competitive and realistic prices. By systematically comparing each property feature, such as size, location, amenities, and recent market trends, a CMA enables informed strategic decisions for buyers and sellers alike.

The other options do not capture the specific purpose and methodology of a CMA. Outlining potential buyers does not directly relate to property valuation, while a financial breakdown focuses on the costs associated with a property instead of its market value. Lastly, a marketing strategy is concerned with how to sell the property rather than assessing its value.