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

A comparative market analysis (CMA) serves the primary purpose of estimating the value of a property by comparing it to similar properties that have recently sold in the area. This technique involves evaluating factors such as size, location, features, and recent sale prices of comparable properties, also known as "comps." By analyzing these metrics, real estate professionals can provide sellers with a well-informed estimate of their property's market value, ensuring that it's priced competitively to attract potential buyers.

The accuracy of a CMA relies heavily on selecting relevant comparables and adjusting for differences in property features. This systematic approach allows agents and appraisers to provide a realistic value and contributes significantly to the pricing strategy in real estate transactions. Thus, option B effectively encapsulates the essential function of a CMA in real estate practices.