What is the purpose of a comparative market analysis?

The purpose of a comparative market analysis (CMA) is primarily to help buyers and sellers understand market conditions. A CMA involves evaluating similar properties in the same area that have recently sold, are currently on the market, or were on the market but did not sell.

This analysis provides crucial information on the values of homes in the same neighborhood or similar environment, helping clients make informed decisions about pricing and offers. By understanding market conditions through a CMA, sellers can set competitive prices, while buyers can ascertain whether properties are fairly priced based on comparable sales. This insight supports a more strategic approach to buying or selling real estate, making it a vital tool within the real estate profession.

In contrast, other options focus on specific areas that are not part of a CMA's objectives. The assessment of property taxes, evaluating property damage, and ensuring compliance with building codes serve different functions in the real estate process and do not encompass the broader market analysis that a CMA provides.