What is the main purpose of a comparative market analysis in real estate?

The main purpose of a comparative market analysis (CMA) in real estate is to determine a property's market value based on the sale prices of similar properties in the area. This process involves analyzing various factors, such as the location, size, condition, and features of comparable homes that have sold recently. By comparing these properties, real estate professionals can provide sellers and buyers with an informed estimate of what a property is likely to sell for in the current market.

This analysis is crucial for setting competitive listing prices or making appropriate offers. It enables agents and clients to make data-driven decisions regarding pricing strategies, thus facilitating successful transactions. Understanding market trends and pricing dynamics allows for more effective negotiation between parties involved in a sale.

The other options represent important aspects of real estate but do not capture the primary function of a CMA. Assessing the quality of a property's construction relates more to home inspections and appraisals, establishing property boundaries pertains to surveys and legal definitions of property lines, and providing tax assessment valuations involves a different process that is not directly tied to the CMA's focus on market dynamics and comparable sales.