Property ValuationIntermediateAlaska Exam

A licensee in Alaska performing a comparative market analysis (CMA) is:

APerforming a licensed appraisal
BProviding an estimate of market value based on similar properties to help clients price or make offersCorrect
CRequired to hold an appraiser's license
DCreating a legally binding value opinion, though the exact requirements can vary somewhat by jurisdiction

Why Providing an estimate of market value based on similar properties to help clients price or make offers Is Correct

Answer B: Providing an estimate of market value based on similar properties to help clients price or make offers

A CMA is a market analysis tool used by real estate licensees to help clients price listings or evaluate offers. It is not a formal appraisal and does not require an appraiser's license, but it is also not a substitute for a licensed appraisal.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

Key Property Valuation Terms in This Question

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