What is a comparative market analysis?

A comparative market analysis (CMA) is an important assessment tool used in residential real estate law in Iowa. A CMA helps determine the fair market value of a property by comparing it to similar properties that have recently sold in the same area. When performing a CMA, agents assess the features of the subject property, such as size, condition, layout, and amenities, and compare them to those of similar sold properties. The sizes, features, and other characteristics of the sold properties are compared to the subject property to determine an estimated market value. Agents use a variety of data sources to find comparable properties, including real estate databases, county records, and MLS listings. Agents also observe active listings in the same area to get a better understanding of the market’s activity. When performing a CMA, agents should use properties that have sold within the past six months, as well as properties that are currently listed but have not yet sold. This helps to ensure that the estimate of market value is accurate and up-to-date. Once a CMA is completed, the agent provides an estimated market value of the subject property to the buyer or seller. This estimated value can then be used by the buyer or seller to make an informed decision about the property.

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