What does a Comparable Market Analysis (CMA) establish?

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A Comparable Market Analysis (CMA) is used primarily to determine the value of a property by analyzing the sale prices of similar properties in the same area, also known as "comparables" or "comps." This analysis takes into account various factors such as location, size, condition, and features of the properties to derive a fair market value for the property in question. By focusing on how similar properties have performed in the market recently, a CMA provides a realistic valuation based on actual recent transactions rather than speculative or theoretical values.

The other options do not align with the core purpose of a CMA. While potential future value, insurance value, and repair costs are important factors in real estate, they are not the primary focus of a CMA. A CMA specifically assesses current market value through comparison with similar properties, which is crucial for both buyers and sellers in making informed decisions.

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