What key factor is evaluated in a Comparative Market Analysis (CMA)?

In a Comparative Market Analysis (CMA), the key factor evaluated is the pricing of similar properties in the area. This involves analyzing properties that have recently sold, are currently on the market, or were on the market but did not sell, often referred to as "comps."

The reason similar properties are critical to a CMA is that they provide a benchmark for determining the fair market value of a subject property. By examining the features, conditions, sizes, and selling prices of comparable homes, real estate professionals can make informed recommendations regarding pricing strategies for both sellers and buyers. Establishing a price based on similar properties helps ensure that the listing is competitive and aligned with current market trends, maximizing the chance for a quick sale at a desirable price.

Other options, while related to real estate, do not serve the primary purpose of a CMA. Property taxes and homeowner's insurance rates pertain to the ownership costs and protections but are not directly tied to market value assessment. Historical property value trends provide context for market dynamics over time, but a CMA focuses specifically on the current market context and comparables for pricing in the immediate area.