What is the primary purpose of a Comparative Market Analysis (CMA) in property valuation?
Correct Answer
D) To estimate market value from recent comparable sales
A CMA uses recent sales of comparable properties to estimate market value by analysing similarities and differences between the subject property and recent sales. This comparison method is fundamental to establishing market value based on actual market transactions.
Why This Is the Correct Answer
A CMA estimates what a property is likely to sell for by comparing it with recent sales of similar properties and adjusting for the differences. It is the agent's everyday tool for pricing advice.
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