Colorado Sales License Practice Test 2026 – Your All-in-One Guide to Passing the Exam!

A Comparative Market Analysis (CMA) is a tool used primarily by real estate professionals to estimate the value of a property. It assesses the value by comparing the property in question to recently sold properties that are similar in various aspects, including location, size, and condition. This process provides a data-driven approach to determine a fair market value, which is crucial for price-setting whether the property is being bought or sold.

The CMA relies heavily on current market trends and can reflect fluctuations in property values based on the performance of similar homes in the area, making it an essential resource for clients and agents alike. By examining these comparable properties—often referred to as "comps"—the CMA helps in understanding the competitive standing of a property and aids in making informed decisions regarding listing prices or offers.