What is the definition of "comparative market analysis" (CMA)?

The definition of "comparative market analysis" (CMA) focuses specifically on estimating a property's value by examining the selling prices of similar homes in the area. This approach helps real estate professionals provide clients with an informed perspective on what a property is worth based on actual market activity, allowing for a more accurate pricing strategy for sellers and a reasonable basis for offers from buyers.

By taking into account the characteristics of comparable properties, such as size, location, age, and amenities, the CMA process systematically adjusts the values of these homes to reflect differences, thus arriving at a more precise valuation for the subject property.

While other options might relate to aspects of real estate pricing and market evaluation, they do not encompass the core function of a CMA, which is specifically about determining the value of a property based on its relationship to similar homes that have recently sold.