Comparative Market Analysis (CMA)
Real estateGlossary term
Definition
An evaluation of a property's value based on recently sold comparable properties in the same area. Real estate agents prepare CMAs to help sellers set listing prices and buyers make competitive offers. Considers size, condition, location, and features.
Related terms
- AppraisalA professional evaluation of a property's market value, typically required by lenders before approving a mortgage. Based on factors like location, condition, and comparable sales.
- Fair Market ValueThe price a property would sell for on the open market between a willing buyer and seller, both having reasonable knowledge of relevant facts. Determined by comparable sales, appraisals, and market conditions. Used for tax assessments and insurance claims.
- Home InspectionA professional examination of a property's condition before purchase, covering the structure, roof, plumbing, electrical, HVAC, and more. Typically costs $300-$500 and provides buyers leverage to negotiate repairs or a lower price.
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