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

The purpose of a comparative market analysis, or CMA, is to estimate a property's value by comparing it to similar, recently sold properties in the same area. This method takes into account various factors such as location, size, features, and the sale prices of comparable homes to arrive at a reasonable estimate of what a property may be worth in the current market. CMAs are commonly used by real estate agents to help sellers set an appropriate listing price and to assist buyers in understanding the market value of a property they're interested in.

The other options do not align with the primary goal of a CMA. A legal assessment of a property’s condition relates more to home inspections and legal evaluations rather than market value estimation. While an appraisal conducted by a licensed appraiser is a formal assessment of property value, it is distinct from a CMA and not meant as a replacement. Lastly, informing buyers about new properties in the area pertains to marketing and listing strategies, which do not directly connect to the valuation purpose of a CMA.