What is the primary focus of a comparative market analysis?

The primary focus of a comparative market analysis (CMA) is to estimate the market value of a property. A CMA involves evaluating similar properties in the area—often referred to as "comps"—that have recently sold, are currently on the market, or were withdrawn from the market. By analyzing these comparable properties, real estate professionals can assess the fair market value of the subject property.

The process typically considers various factors such as location, size, condition, and features of the properties. This analysis helps sellers price their homes appropriately and assists buyers in making informed offers. A well-conducted CMA provides essential insights that reflect the current real estate market conditions, which is critical for effective buying and selling decisions.

The other options, while related to real estate, do not reflect the primary intent of a CMA. Determining property taxes focuses on local tax assessments rather than property value assessment. Analyzing investment risks pertains to evaluating potential returns on investment and market fluctuations, which is a broader scope than a property's market analysis. Establishing rental rates involves considering different criteria such as demand and location, but it is not the main goal of a comparative market analysis, which targets market value especially for transactions related to buying or selling properties.