What is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is fundamentally a method used to assess a property's value by comparing it to similar properties that have recently sold in the same area. This process takes into account various factors such as the size of the properties, features, condition, and the time frame in which they were sold, providing a realistic indication of what a property might be worth in the current market.

By focusing on comparable properties, a CMA helps real estate agents and clients arrive at a reasonable listing price or offer price for a property based on actual market data. This analysis is essential for both sellers and buyers, as it allows them to make informed decisions backed by statistical evidence.

The other choices, while relevant to real estate, do not correctly define a CMA. For example, neighborhood demographics offer insights into the community but do not directly assess property values. Similarly, mortgage rate calculations pertain to financing rather than property appraisal, and properties currently for sale do not provide a historical context needed to determine value comparably. Therefore, the option that best describes a CMA is the process of evaluating property values through comparisons to similar properties.