What does a comparative market analysis (CMA) help determine?

A comparative market analysis (CMA) is a critical tool used by real estate professionals to determine the market value of a property by comparing it to similar properties in the area that have recently sold, are currently on the market, or have expired listings. This process involves analyzing various factors such as location, size, condition, and features of the properties involved.

By focusing on comparable properties, a CMA helps establish a reasonable and competitive list price, offer, or rental price for a property based on the current market conditions. This assessment ensures that sellers can price their homes appropriately to attract buyers and that buyers can make informed offers based on market realities.

The other options do not pertain directly to the primary purpose of a CMA. Tax assessments involve evaluations by local tax authorities for property tax purposes, repairs are contingent on inspections and condition assessments rather than market analysis, and property insurance rates are determined by factors such as risk, coverage, and location, making them distinct from the pricing techniques used in a CMA.