https://idealrei.com/blog/comparative-market-analysis
/”The CMA is used to help evaluate how your home will fare against the competition. It takes a look at both homes that are currently listed and those recently sold. The purpose is to find the highest price that will still make the home competitive on the open market./” – Realtor.com
Doing a Comparative Market Analysis (CMA), and finding comparable sales (comps) should be just one piece of your overall property analysis. You should also consider rent income and expenses (such as maintenance, taxes, and mortgages) to analyze your return.
It should also be noted that there are multiple ways to analyze the value of the property. Other methods include using the capitalization rate or gross rent multiplier. Check out each to learn more and see which method you should be using.
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