What are "comparative market analysis (CMA)" reports used for?

Comparative Market Analysis (CMA) reports are essential tools in real estate that help estimate a property's value by looking at similar properties that have recently sold in the same market area, often referred to as "comparables" or "comps." This method involves analyzing various factors such as the properties' locations, sizes, features, and sale prices to derive a realistic value for a property in question.

A CMA provides valuable insights to buyers and sellers alike, enabling sellers to price their homes competitively and helping buyers make informed offers. The approach accounts for current market conditions, making it a useful resource in the transaction process. Overall, CMAs play a crucial role in establishing fair market value based on empirical evidence derived from real transactions in the vicinity.