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What is a Comparative Market Analysis?

A comparative market analysis is an examination of the prices at which similar properties in the same area recently sold. As a licensed Realtor, I will perform a comparative market analysis for my clients to help determine a price to list when selling a home or a price to offer when buying a home. Since no two properties are identical, adjustments are made for the differences between the sold properties and the one that is about to be listed or purchased to determine a sale price or offer. A comparative analysis is not a formal appraisal, but many of the same criteria are used in the process.