Ace the PSI New Jersey Real Estate Test 2025 – Unlock Your Property Power!

The goal of a comparative market analysis (CMA) is to determine the market value of a property based on the sale prices of similar properties in the area. A CMA provides valuable insights into the current real estate market by analyzing factors such as location, property features, and recent sales data of comparable homes. By comparing these similar properties, real estate professionals can arrive at a well-informed estimate of a property's value, which is essential for setting a competitive listing price or making an informed purchase offer.

A CMA does not focus on estimating renovation costs, assessing property taxes, or evaluating a broker's performance, as these are distinct activities with different objectives. Instead, its primary purpose is to give buyers and sellers an accurate picture of what a property is worth relative to comparable options in the market. This information is crucial for making strategic decisions in the real estate transaction process.