What is the purpose of a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) serves the essential purpose of estimating a property's market value based on the sale prices of similar properties in the area. This analysis is crucial for real estate professionals as it provides an informed basis for pricing a property correctly according to current market conditions. By comparing similar properties—often referred to as "comps"—that have recently sold, are currently on the market, or were listed but did not sell, agents can gauge the current demand and set a competitive price.

The accuracy of a CMA relies heavily on factors such as location, size, condition, and features of the comparable properties. This method is particularly beneficial for sellers looking to list their properties at a price that will attract buyers while also maximizing their returns. It helps in setting realistic expectations for both buyers and sellers, ensuring an efficient transaction process.

In contrast, while forecasting future property values, determining property tax evaluations, or finding potential buyers are important aspects of the real estate business, they are not the primary focus of a CMA. Rather, the CMA is specifically designed to provide a snapshot of a property's current valuation based on market activity, making option B the most direct and accurate answer to the question.