What does a Comparative Market Analysis (CMA) evaluate?

A Comparative Market Analysis (CMA) evaluates similar properties to determine a property's market value. This process involves comparing properties that are similar in location, size, and features to the property in question to assess its worth in the current market. The CMA utilizes data from recently sold properties, properties currently for sale, and properties that did not sell, carefully analyzing factors like price per square foot and the conditions of sale to derive an estimated value.

In the context of real estate, understanding a property's market value is essential for both buyers and sellers. For sellers, a well-conducted CMA can help set a competitive listing price, while buyers can use it to gauge if a property is fairly priced.

The other options focus on different aspects of real estate that are unrelated to determining property value. Marketing strategies for real estate agents deal with how to promote properties effectively rather than assessing their worth. Differences between mortgage options focus on financing rather than property appraisal. Investment opportunities in commercial real estate are about potential returns on investment, which requires different analyses than those used in a CMA.