What is the first step in preparing a comparative market analysis (CMA)?

The first step in preparing a comparative market analysis (CMA) is to communicate with the client. This initial communication is crucial as it sets the foundation for the entire process. During this conversation, the real estate professional gathers essential information about the client's needs, the property in question, and the objectives of the analysis. Understanding the client’s perspective, motivations, and specific requirements can significantly influence how the CMA is approached and executed.

This communication allows the agent to clarify what the client expects from the CMA, whether it's to establish a competitive listing price, understand the market value for investment purposes, or facilitate a sale. By ensuring that the client's needs are well understood from the outset, the agent can tailor the CMA process accordingly, making it more relevant and effective.

Following this step, the agent can then proceed to view the property, select comparable sales, and make adjustments to those comparables, but without first establishing a clear line of communication with the client, the effectiveness of the subsequent steps may be diminished.