What is a comparative market analysis (CMA) and how is it used?

• A. An analysis of recent sales of similar properties to estimate a property's value for listing price or offer
• B. A survey of current zoning restrictions
• C. A calculation of mortgage payments
• D. An inventory of available rental properties

Answer: (A)

Comparing recently sold similar homes in the area to estimate what a property is worth and to guide pricing. A CMA uses data from comparable properties—homes that are alike in size, features, condition, and location—to see what buyers have actually paid recently. By looking at these sold prices and adjusting for any differences (like square footage, upgrades, or lot size), you arrive at a market value range for the subject property. This helps set a competitive listing price or craft a reasonable offer, reflecting current market conditions and demand. It may also include active and pending listings to show what buyers are currently considering. The CMA is a broker’s pricing tool based on real-world transactions, not a formal appraisal, and it isn’t about zoning, mortgage calculations, or rental inventories.