When is a Comparative Market Analysis (CMA) typically used?

A Comparative Market Analysis (CMA) is primarily used while marketing a property. It helps real estate professionals provide a detailed assessment of a property's value by comparing it to similar properties that have recently sold, are currently on the market, or were on the market but did not sell. This analysis takes into account various factors such as location, size, features, and market trends, allowing sellers to set an appropriate asking price and helping buyers understand the competitive landscape. By presenting accurate and comparative data, the CMA aids in effectively positioning a property in the market to attract potential buyers and facilitate a timely sale.

In contrast, while appraisals may also use similar data, a CMA is specifically geared towards marketing strategies rather than formal valuation required by lenders. Additionally, while homeowners might consider a CMA before renovations, it is not the primary purpose of the analysis. Finally, during or after price negotiations, a CMA may inform discussions, but its primary function is to support initial marketing efforts, making this choice the most accurate.