A comparative market analysis (CMA) is a tool that real estate agents use to estimate the value of a specific property by evaluating similar ones that have recently sold in the same area. In order to conduct the analysis, agents search for recently sold homes in the same area that are as similar to the subject property as possible. These homes, which are known as comparable sales (comps), are used to conduct a sales comparison approach to pricing.
Although a comparative market analysis uses similar housing market indicators to compare and identify regional home values, it’s not considered an official home appraisal. Whereas home appraisals are conducted by appraisers to create home valuations, CMAs are completed by licensed real estate professionals to estimate the fair market value.
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References:
Burris, R. March 11,2021. Rocket Mortgage. Comparative Market Analysis: A Guide. Retrieved from: https://www.rocketmortgage.com/learn/comparative-market-analysis