What is a "Comparative Market Analysis" (CMA)?

A "Comparative Market Analysis" (CMA) is an evaluation that examines similar properties—often referred to as "comps"—to estimate the current market value of a property being assessed. This process involves analyzing the sale prices of comparable properties that have recently sold in the same area, factoring in variations in features such as size, condition, location, and amenities. The CMA serves as a vital tool for real estate professionals, buyers, and sellers to gauge the fair market value of a property, whether for sale or for appraisal purposes.

While other options might touch on different aspects of real estate, they do not accurately define a CMA. The assessment of rental income potential pertains more to investment analysis, a detailed inspection report focuses on property condition, and a legal document required for property sales relates to transaction paperwork. Each of these has distinct purposes that are separate from the core function of a CMA, which is to derive property value through comparative analysis.