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

A comparative market analysis (CMA) serves primarily to determine the seller's listing price by evaluating the prices of recently sold properties that are comparable in terms of location, size, condition, and features. This process provides a data-driven approach for real estate professionals, enabling them to present a well-supported list price to clients.

The main focus of a CMA is to gather relevant market data and analyze it, which helps to set an appropriate and competitive price that reflects the current market conditions. By comparing similar properties, the CMA highlights the market’s demand trends, thereby guiding sellers in positioning their home effectively to attract potential buyers.

While a CMA may indirectly inform other areas, such as understanding investment opportunities or analyzing market trends, its core purpose remains firmly aligned with setting the listing price for a property.