A Comparative Market Analysis (CMA) is best described as which of the following?
Correct Answer
B) A pricing analysis prepared by a real estate agent using recent comparable sales to help estimate a property's market value
A CMA is a pricing analysis prepared by a real estate agent or broker using recent comparable sales, active listings, and expired listings to help a seller set a listing price or a buyer evaluate an offer price. In Iowa, a CMA is not a licensed appraisal and cannot be represented as one. It may not be used as a substitute for a licensed appraisal in mortgage lending transactions. Iowa licensees must be careful not to misrepresent a CMA as an appraisal, as doing so could violate Iowa Code Chapter 543B and Iowa Real Estate Commission rules.
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