Answer:
A. It shows what similar homes in the area have recently sold for.
Explanation:
Comparative market analysis is a practice in real estate, where in Real Estate Agents compare the prices at which homes in an area were recently sold for. This gives the seller of a property an idea of how much his property is worth. It would then help him in determining a listing price.
In order to perform an effective comparative market analysis, there are different techniques applied by the agents. For example, he could collate the listing prices of homes recently sold in the area, perform a personal analysis of the home, or even assess the neighborhood in which the home is located. The purpose of all of these is to have an idea of the true worth of the property.
