A California real estate agent is selecting comparable sales for a CMA on a property in Fresno. The agent finds a sale from 14 months ago in the same neighborhood. Under standard California CMA practice, why might the agent hesitate to use this comparable?
Correct Answer
A) Sales older than 12 months are generally considered less reliable due to changing market conditions
In California CMA and appraisal practice, more recent sales are generally preferred because they better reflect current market conditions. While there is no strict legal cutoff, sales older than 6-12 months are considered less reliable. In rapidly changing California markets, time adjustments become increasingly uncertain over longer periods. The comparable can still be used with appropriate adjustments if no better alternatives exist.
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Previous Question
An agent preparing a CMA identifies a recent parent-to-child transfer of a single-family home. The agent cannot confirm whether the transfer involved a gift, a below-market sale, or a full market-value transaction. What is the most important factor in determining whether this property can be used as a valid comparable?
Next Question
In California, a real estate agent prepares a CMA for a home in a community that has both a Mello-Roos special tax and a Landscape and Lighting Assessment District (LLAD) levy. A potential buyer asks the agent to explain how these assessments differ from the standard Proposition 13 property tax. Which statement is MOST accurate?