Oregon Real Estate Practice Test 2025 – Complete Exam Prep

A comparative market analysis (CMA) is primarily used to establish a property's value based on recent sales of similar properties in the same area. This practice involves analyzing the selling prices of homes that are comparable in terms of size, condition, location, and features to gain insights into what a property is worth in the context of the current real estate market.

The strength of a CMA lies in its reliance on actual sales data rather than merely historical averages or predictions. By examining properties that have recently sold, a CMA provides a realistic and accurate valuation that reflects buyers' purchasing behavior and market demands. This information is particularly beneficial for sellers setting an appropriate listing price and for buyers making informed offers.

While determining the average selling price in the neighborhood is a component of a CMA, it does not fully encompass the comprehensive analysis that defines a CMA. As for predicting future market trends or valuing commercial properties, those tasks require different approaches and methodologies not covered by a standard CMA focused on residential real estate.