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

A comparative market analysis (CMA) is primarily designed to compare similar properties within a specific market to help determine the value of a property. This process involves analyzing recently sold properties, properties currently on the market, and properties that did not sell, focusing on characteristics such as size, location, condition, and amenities that are comparable to the property being appraised.

By establishing a benchmark of comparable sales, appraisers can derive a more accurate and fair market value for a property. This method is particularly useful for understanding local market trends and setting realistic price expectations for buyers and sellers alike.

The other potential purposes listed, such as analyzing zoning regulations or assessing structural integrity, pertain to different aspects of real estate considerations and are not the core focus of a CMA. Similarly, while evaluating historical changes in property prices can provide context, it does not directly serve the primary purpose of determining current property valuations in the same way that a CMA does. This distinction highlights why the focus on comparing similar properties is central to the appraisal process through a CMA.