What is a CMA in real estate appraisal?

A CMA, or Comparative Market Analysis, is a valuation method used in real estate appraisal that assesses the value of a property by comparing it to similar properties that have recently sold, are currently on the market, or were previously for sale. This approach helps to establish a price range based on market trends and the characteristics of comparable properties, such as location, size, and features.

By analyzing the sales data of similar properties, real estate professionals can provide sellers with an informed estimate of their home's market value or assist buyers in determining a fair offer price. The use of comparative sales is a fundamental principle in real estate appraisal, as it reflects real-world buying and selling activity, making CMA an essential tool for accurately gauging property values.

Other options such as Current Market Assessment, Cost Management Analysis, and Contractual Market Appraisal do not accurately represent the widely accepted practices and definitions within the real estate appraisal field. While they may sound relevant, they do not coincide with the established term and intended purpose of a CMA in this context.