When a real estate broker performs a Comparative Market Analysis (CMA) on a property, what is this activity considered?

When a real estate broker conducts a Comparative Market Analysis (CMA), this activity is considered a valuation service. A CMA is a method used to determine the market value of a property by comparing it to similar properties in the same area that have recently sold, are currently for sale, or have been taken off the market. This analysis helps to provide a broker and their client with an estimate of what a property is worth based on current market conditions.

Through the CMA, the broker evaluates various factors such as location, property size, condition, features, and price trends in the market. This valuation service is crucial when setting a listing price for a property, negotiating offers, or assessing the appropriate value for buyers, making it an essential tool in real estate transactions.

While market research, a listing strategy, and an investment analysis may play a role in the overall real estate process, they do not specifically encompass the targeted approach and comprehensive evaluation involved in a CMA. Therefore, recognizing a CMA as a valuation service highlights its core function of determining property value in a competitive market.