What does a competitive market analysis primarily involve reviewing?

A competitive market analysis (CMA) is a crucial tool used by real estate agents to determine the value of a property. It primarily involves reviewing recent sales data of comparable properties within a specific area, as well as examining properties that are currently on the market. This dual approach provides a more comprehensive view of the market conditions, allowing for accurate pricing recommendations.

By analyzing recently sold properties, agents can understand how much buyers are willing to pay for similar homes in the area. Additionally, looking at properties currently on the market helps gauge the competition and can reveal trends in pricing and demand. This thorough evaluation of both recently sold and active listings equips real estate professionals with the necessary insights to guide sellers or buyers effectively.

In contrast, focusing solely on recently sold properties would provide a limited view of the current market dynamics. Relying only on comparable properties or the appraiser's notes would miss the critical context provided by the active listings, thus limiting the analysis's effectiveness. Therefore, a combination of both recently sold properties and those currently available paints a clearer picture of the market landscape.