What does a Comparative Market Analysis (CMA) help to estimate?

A Comparative Market Analysis (CMA) serves as a tool for estimating a property's value by examining recent sales of similar properties in the same area. This analysis allows appraisers and real estate professionals to assess the current market conditions and identify how factors such as size, location, and features of comparable properties impact value. When a CMA is conducted, it utilizes data about recently sold homes, active listings, and properties that did not sell to derive a realistic estimate for the property in question.

By focusing on recently sold comparable properties, a CMA provides a context in which to determine a competitive price that aligns with current market trends, which is crucial for both sellers looking to price their home appropriately and buyers seeking a fair market value.

The other options do not align with the primary purpose of a CMA. For instance, estimating insurance costs involves different factors, including risk assessments and coverage requirements, rather than market sales data. Similarly, while a CMA can provide insights that might affect the time needed to sell, it is not specifically designed to estimate selling timelines. Lastly, property tax liability calculations pertain to assessed values and tax rates rather than comparative market data. Therefore, the primary function of a CMA is indispensable in establishing a property's value based on the dynamics of similar property transactions