In real estate, what does "comparative market analysis" involve?

The concept of "comparative market analysis" (CMA) is essential in the real estate field as it involves evaluating similar properties in a specific market to determine a property's market value. This process includes analyzing recently sold properties, properties currently on the market, and properties that have been withdrawn from the market. By closely examining characteristics such as location, size, condition, and amenities, real estate professionals can provide an informed estimate of a property's value, which is crucial for both buyers and sellers.

The focus on evaluating similar properties allows real estate agents and appraisers to ascertain a competitive price for a property, which is vital for effective marketing and negotiation strategies. This process is not only invaluable for setting the right asking price but also aids in understanding market trends and the local real estate landscape.