What is the purpose of a comparative market analysis (CMA)?

The purpose of a comparative market analysis (CMA) is to evaluate property values by comparing similar properties that have recently sold in the same area. This process involves assessing attributes such as location, size, age, and features of the properties in question to establish a realistic market value for a home. By analyzing data from these comparable properties, real estate professionals can provide sellers with a well-informed pricing strategy and help buyers understand the value of a property they are interested in purchasing. This analysis is crucial for making educated decisions in real estate transactions, as it reflects the current market conditions and enables stakeholders to gauge fair pricing based on recent sales data.

The other options, while related to real estate, do not accurately describe the primary function of a CMA. Gathering historical values pertains more to property record analysis and does not focus on current market conditions like a CMA does. Determining the cost of repairs is a different process altogether and relates more to property condition assessments. Setting rental prices based on nearby properties involves different criteria, primarily focused on income potential rather than the sale price evaluation inherent in a CMA.