Texas Real Estate State Practice Exam

The primary purpose of a comparative market analysis (CMA) is to estimate a property's value based on similar sales. A CMA involves gathering data about recently sold properties that are comparable to the property in question, considering factors like location, size, condition, and other relevant characteristics to derive an accurate assessment of its market value. This process helps real estate agents and homeowners determine a competitive listing price or a fair offer for potential buyers.

By analyzing the current market dynamics and recent sales, a CMA offers valuable insights that inform pricing strategies, ensuring that the property is positioned appropriately within the market. This practice is essential for making informed real estate decisions, whether one is selling or buying a property. In contrast, options related to assessing buyers, approaching lenders, or providing legal advice do not reflect the specific function of a CMA in the real estate process.