What is a common method used for property valuation?

The Comparative Market Analysis (CMA) is a widely recognized method for valuing properties, especially in the real estate market. A CMA involves evaluating similar properties that have recently sold, are currently for sale, or were previously on the market in the same area. By comparing these properties based on attributes such as location, size, condition, and features, a real estate agent can estimate a property's fair market value. This method provides a detailed and localized assessment, making it particularly useful for buyers, sellers, and agents in determining an appropriate listing price or offering price in a competitive market.

This technique's effectiveness is rooted in its reliance on actual sales data, reflecting current market conditions and buyer preferences, which can lead to a more accurate valuation compared to other approaches that might lack this localized context.