Direct answer
What does comparative market analysis mean?
A comparative market analysis (CMA) is a broker's analysis of relevant market data to help a seller or buyer consider a probable price range.
Exam cue: A CMA is a brokerage service and is not an appraisal presented as an independent appraiser's value opinion.
What does it look like in a question?
Example
A licensee compares recent sales, active listings and market conditions before discussing listing strategy.
Common exam trap
What should you not confuse it with?
Calling a CMA an appraisal can misstate the licensee's role.
Related valuation terms
AppraisalAn appraisal is an opinion of value developed by a qualified appraiser for an identified use, property interest and effective date.CapitalizationCapitalization is the process of converting income into an indication of value.ComparableA comparable is a property used as market evidence because it is sufficiently similar to the property being analyzed.Cost approachThe cost approach is a valuation approach that adds land value to the depreciated cost of the improvements.DepreciationDepreciation is a loss in property value from physical deterioration, functional obsolescence or external obsolescence in appraisal.External obsolescenceExternal obsolescence is a loss in value caused by influences outside the property.
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