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

The purpose of a comparative market analysis (CMA) is to estimate a property's value by comparing it to similar properties in the same area. This process involves analyzing recent sales data, current listings, and market trends to determine where a property stands in relation to others that are similar in size, condition, and location.

A well-executed CMA provides a data-driven foundation for pricing a property accurately, whether for sale or for tax evaluation purposes. Real estate professionals utilize this technique to ensure that their clients make informed decisions, whether that means setting the right listing price to attract potential buyers or understanding the market dynamics to make competitive offers.

In this context, evaluating potential tenants, as mentioned in another choice, focuses more on assessing individual applicants rather than property valuation. Similarly, ascertaining rental payment criteria pertains to lease agreements and tenant qualifications rather than property value estimation, while assessing zoning regulations involves land use planning and legal compliance rather than direct property market value analysis. Thus, the primary and correct focus of a CMA is indeed on estimating a property's value through comparison.