A Comparative Market Analysis (CMA) is best described as which of the following?
Correct Answer
D) An estimate of market value prepared by a real estate licensee to help price a property for sale or purchase
A CMA is a market analysis prepared by a real estate licensee (not a licensed appraiser) using recent sales of comparable properties to help sellers price their property competitively or help buyers make informed offers. A CMA is not a formal appraisal, is not performed by a licensed appraiser, and cannot be used by lenders to qualify a borrower for a mortgage loan.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
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.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
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- → The income approach to appraisal is most commonly used for which type of property?
- → External obsolescence in Oklahoma:
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
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