A Comparative Market Analysis (CMA) is a tool that helps you, as a homebuyer or seller, determine the current market value of a home. It’s a report prepared by a real estate agent that compares the home you’re interested in with similar properties that have recently sold in the same area.
The CMA looks at homes that are similar in size, features, condition, and location. By comparing these “comps” (comparable properties), the agent can estimate a fair asking price if you’re selling, or help you decide how much to offer if you’re buying. The goal is to ensure you’re paying or asking a price that reflects the current local real estate market.
For example, if homes similar to yours recently sold for $400,000, the CMA might suggest pricing your home similarly. On the flip side, if you’re buying and the home you want is listed much higher than recent sales of similar homes, it could be overpriced.
A CMA is a valuable guide, but it’s not the same as a professional appraisal. It’s a helpful starting point for understanding the value of a property before making any big decisions.