What is the primary purpose of a Comparative Market Analysis (CMA) in real estate?
Correct Answer
B) To help sellers and buyers understand likely market value range
A CMA is a tool used by real estate professionals to help clients understand the likely market value range by analyzing comparable sales, but it is not a formal appraisal and provides an estimated range rather than a precise value.
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- → When conducting a CMA, which of the following properties would be considered the BEST comparable for a 1,800 sq ft bungalow built in 1985?
- → Which of the following scenarios would most likely result in functional obsolescence in a residential property?
- → In Ontario, what is the key difference between an appraisal and a Comparative Market Analysis (CMA)?
- → An appraiser is using the cost approach to value a custom-built heritage home. The reproduction cost new is estimated at $850,000, the land value is $300,000, and total depreciation is calculated at $180,000. What is the property's estimated value using this approach?
- → A commercial property appraiser is reconciling three different approaches that yielded the following values: Direct Comparison $2,100,000, Cost Approach $2,400,000, Income Approach $1,950,000. Given that this is an income-producing office building in a market with limited sales but strong rental data, which approach should receive the greatest weight in the final value estimate?
- → Which appraisal method is most appropriate when valuing a unique heritage property with no comparable recent sales?
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