What method can be used to analyze market data for similar properties?

The comparative market analysis (CMA) is a method specifically designed for analyzing market data for similar properties. This approach involves evaluating recent sales of comparable properties in the same area to determine a fair market price for a subject property. By comparing key features such as size, location, condition, and amenities, real estate professionals can identify trends and assess the value of a property based on current market conditions.

CMA is essential in residential real estate where property values fluctuate based on local market trends. It enables agents and appraisers to make informed decisions about pricing, enhancing the accuracy of appraisals and ensuring that buyers and sellers are operating within a fair market framework.

Other methods mentioned, such as statistical modeling, focus on broader data analysis techniques that may incorporate various factors but do not specifically center around comparable sales like CMA does. The cost approach analysis is used more for estimating a property’s value based on replacing the cost of the structure, rather than directly comparing it with the market data of similar properties. Retail analysis looks at the performance of retail properties and trends in consumer behavior, which does not apply directly to the residential comparative analysis context.