What best describes a comparative market analysis (CMA) prepared by a real estate broker?
Correct Answer
D) A pricing opinion based on comparable market data, usually used to help set a listing or offer price
A CMA is a broker’s pricing opinion built from market data such as recent comparable sales, pending sales, and listings. It is commonly used to help a seller choose a listing price or to help a buyer think through an offer price, but it is not the same thing as a formal appraisal.
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More Valuation Market Analysis Questions
A buyer in Rochester is pre-approved for a conventional mortgage and wants to purchase a co-op apartment. What should the buyer's agent explain about financing a co-op purchase in New York?
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- → An appraiser is using the income approach to value a 12-unit rental building in Brooklyn. The building generates $180,000 in annual gross rental income. Operating expenses total $54,000 annually. The appraiser determines that a 7.5% capitalization rate is appropriate for this type of property in this location. What is the indicated value using the income approach?
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