What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is fundamentally a comparison of similar properties' prices. It is a tool used primarily in the real estate industry to help agents and sellers understand the current market conditions for a specific property. By analyzing the recent sales of similar properties, also known as "comps," a CMA accurately reflects the pricing trends and helps establish a competitive price for the property in question.

The other options do not capture the essence of what a CMA entails. While a report on market trends might include some aspects relevant to a CMA, it is broader and focuses on general market conditions rather than specific property comparisons. A legal document for property sales is not relevant to a CMA, as it is not a legal document at all; instead, it serves as an analytical tool. Lastly, an overview of real estate laws would focus on the regulations governing real estate transactions, which is not the purpose of a CMA. Thus, the defining characteristic of a CMA is its detailed comparison of similar properties’ prices to guide valuation and sales decisions.