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

A comparative market analysis (CMA) serves the primary purpose of estimating the market value of a property. It involves analyzing recent sales data of similar properties in the same geographic area, known as "comparables," to help determine what a property is worth in the current market. Real estate professionals often prepare CMAs to provide sellers with an idea of a competitive listing price or to assist buyers in making informed purchase decisions by understanding how much a property should reasonably cost based on current market conditions.

While property taxes are determined by local taxation authorities based on assessed values and not through a CMA, legal advice typically requires the expertise of a licensed attorney rather than a real estate professional. Similarly, negotiating purchase agreements, while fundamental to the buying and selling process, is a distinct step that follows the valuation provided by a CMA. The focus of the CMA is strictly on establishing a valuation, which is why option B is the correct answer.