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Question: 1 / 400

What is "comparative market analysis" used for?

Determining potential rental income

Assessing buyer qualifications

Determining the value of a property based on recent sales

Comparative market analysis (CMA) is a tool that real estate professionals use to estimate the value of a specific property. It involves analyzing the sale prices of similar properties (often referred to as "comparables") that have recently sold in the same area. By closely examining factors such as location, size, and features of these comparable properties, the real estate agent can arrive at a well-supported estimate of what the property in question might sell for in the current market.

This method is invaluable when setting a listing price for a seller or when making an offer for a buyer, ensuring both parties have a fair understanding of value grounded in actual market data rather than mere speculation. It provides a market-driven basis for pricing decisions, which is essential for both buyers and sellers.

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Evaluating neighborhood demographics

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