What is the primary purpose of a market comparison in real estate?

The primary purpose of a market comparison in real estate is to compare the prices of recently sold similar homes. This process, often referred to as a Comparative Market Analysis (CMA), involves analyzing properties that are similar in size, location, condition, and features to assess their market value. By examining recently sold homes, real estate professionals can gain insight into current market trends and help both buyers and sellers make informed decisions regarding property pricing.

Understanding the market through comparisons allows agents to set realistic prices for sellers to attract potential buyers, or to advise buyers on fair offers based on what similar homes have sold for in the area. This method ensures that the pricing is not only competitive but also reflective of the true market conditions.