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

A competitive market analysis (CMA) serves the purpose of determining the value of a property based on current market trends and conditions. This involves evaluating recently sold properties that are comparable in characteristics, such as location, size, and amenities. By analyzing factors such as sale prices, time on the market, and overall market activity, real estate professionals can estimate a property's fair market value.

This understanding is essential for sellers looking to price their homes competitively and for buyers who want to ensure they are making informed offers. The CMA process also takes into account broader market trends that can influence property values, providing a comprehensive view of the real estate landscape.

The other options are not accurate representations of a CMA's purpose. Finding tenants pertains to property management, establishing a minimum price is more about a seller's negotiation strategy rather than a valuation tool, and providing a legal description involves different documentation related to property ownership and boundaries, which is separate from assessing value.