A Comparative Market Analysis (CMA) is best described as:
Correct Answer
B) An analysis prepared by a real estate agent to help estimate a property's market value using comparable sales
A Comparative Market Analysis (CMA) is a tool used by real estate agents — not licensed appraisers — to help sellers price their property or help buyers make competitive offers. It compares the subject property to recently sold, active, and expired listings with similar characteristics. Unlike a formal appraisal, a CMA is not a legally recognized valuation and cannot be used for mortgage lending purposes.
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Related Topics & Key Terms
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Related Concepts
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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