Comparative Market Analysis
A real estate market analysis is often called a comparative market analysis (CMA). It is an analysis of the current market values of properties, comparable to a property you are looking to buy or sell. This analysis will help you understand the current housing market, how much properties similar to yours are worth, and if it is an investment property, how much you can charge for rent.
The information gathered through a real estate market analysis helps the seller choose a listing price and helps buyers determine if the asking price is too high, too low, or reasonable. A CMA should always be conducted to make sure both buyers and sellers are getting a fair deal, based on the value of the property.
Something important to note is that a real estate market analysis is different than an appraised value, which is determined by a professional appraiser. A comparable market analysis is considered subjective and gives the seller information on the value of similar houses in the area.