What is a Comparative Market Analysis (CMA) used for in real estate?

A Comparative Market Analysis (CMA) is a tool used in real estate to estimate the value of a property by comparing it to similar properties that have recently sold in the same area. This method provides insights into market trends and helps buyers and sellers understand the fair market value of a property based on various factors, such as location, size, condition, and features of comparable homes.

Using a CMA allows real estate agents and homeowners to make informed decisions regarding pricing strategies for selling a home or making an offer on a purchase. The goal is to arrive at a competitive and accurate valuation that reflects current market conditions, thereby facilitating a successful transaction.

The other options do not accurately reflect the purpose of a CMA. Legal obligations relate to agent responsibilities, structural integrity pertains to property inspections, and rental agreements involve tenant and landlord arrangements—all of which diverge from the valuation objectives of a CMA.