What approach is used to prepare a Comparative Market Analysis (CMA) for estimating property sale price?

The market data approach is the most relevant method used to prepare a Comparative Market Analysis (CMA) for estimating a property's sale price. This approach involves analyzing the sale prices of similar properties in the same area that have recently sold or are currently on the market. By comparing these properties, real estate professionals can gauge the current market trends and understand what buyers are willing to pay for comparable homes.

This method is particularly effective in residential real estate markets, as it reflects actual market conditions and buyer behavior. It takes into account various factors such as location, size, condition, and amenities of the properties being compared, which makes it a reliable way to estimate a property's value based on empirical evidence rather than theoretical calculations.

The other approaches, such as the income approach, cost approach, and investment approach, are used in different contexts and focus on different aspects of property valuation. The income approach, for instance, is more applicable to income-generating properties by evaluating potential cash flow, while the cost approach estimates value based on the cost to replace or reproduce the property. The investment approach relates to evaluating potential returns for investment properties but is not typically used in a standard CMA for residential properties.