Under Florida real estate law, what is the primary difference between a Comparative Market Analysis (CMA) and a formal appraisal?
Correct Answer
D) A CMA is an opinion of value that can be prepared by real estate licensees, while appraisals must be done by licensed appraisers
Correct: D - A CMA is an opinion of value that can be prepared by real estate licensees, while appraisals must be done by licensed appraisers. Florida law allows real estate licensees to prepare CMAs as opinions of value, while formal appraisals must be conducted by state-licensed or certified appraisers. Why not A: This option is incorrect because "A CMA can be used for lending purposes while appraisals cannot" does not match the rule tested by the question. The correct answer is "A CMA is an opinion of value that can be prepared by real estate licensees, while appraisals must be done by licensed appraisers". Florida law allows real estate licensees to prepare CMAs as opinions of value, while formal appraisals must be conducted by state-licensed or certified appraisers. Why not B: This option is incorrect because "A CMA can only be performed by licensed appraisers" does not match the rule tested by the question. The correct answer is "A CMA is an opinion of value that can be prepared by real estate licensees, while appraisals must be done by licensed appraisers". Florida law allows real estate licensees to prepare CMAs as opinions of value, while formal appraisals must be conducted by state-licensed or certified appraisers. Why not C: This option is incorrect because "A CMA requires more detailed analysis than an appraisal" does not match the rule tested by the question. The correct answer is "A CMA is an opinion of value that can be prepared by real estate licensees, while appraisals must be done by licensed appraisers". Florida law allows real estate licensees to prepare CMAs as opinions of value, while formal appraisals must be conducted by state-licensed or certified appraisers.
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- → Assume a Florida homestead is subject to a 3% Save Our Homes cap for the coming year. If last year's assessed value was $180,000, what is the capped assessed value before any exemption is subtracted?
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Previous Question
A Florida real estate licensee is preparing a Comparative Market Analysis (CMA) for a seller client in Tampa. The licensee includes three comparable properties that sold within the last six months, all within a half-mile radius. However, one comparable is a foreclosure sale that sold for significantly less than market value. What should the licensee do regarding this comparable?
Next Question
A Florida broker receives a request from a mortgage company to prepare a Broker Price Opinion (BPO) for a property in default. The mortgage company offers to pay $75 for the BPO and requests it be completed within 24 hours. The broker has never seen the property but has access to MLS data. What is the most appropriate action?