Ace the Hawaii Pre-Licensing Exam 2026 – Surf Your Way to Real Estate Success!

A comparative market analysis (CMA) is fundamentally defined as an evaluation of similar properties in a specific area to determine a property’s worth. This process involves analyzing recently sold properties that are comparable in size, condition, location, and features to the property in question. The goal is to establish a reasonable market value based on current market conditions and buyer interest, making it a crucial tool for both real estate agents and sellers in pricing a property accurately.

In contrast, the other options serve different purposes and do not capture the essence of a CMA. For instance, assessing future property values falls under market forecasting or financial analysis, which differs from the immediate comparison of current property sales. Property tax calculations are typically based on assessed values and local regulations, rather than a comparative analysis. Lastly, while analyzing real estate trends can offer valuable insights over time, it does not specifically relate to determining the worth of an individual property using direct comparisons to similar homes.