Property ValuationIntermediateArizona Exam

A Comparative Market Analysis (CMA) in Arizona is prepared by a real estate agent and is:

AA legally recognized appraisal under USPAP
BAn estimate of a property's likely selling price, not a certified appraisalCorrect
CRequired to be filed with ADRE before listing a property
DAcceptable for mortgage underwriting purposes in place of an appraisal

Why An estimate of a property's likely selling price, not a certified appraisal Is Correct

Answer B: An estimate of a property's likely selling price, not a certified appraisal

A CMA is an estimate of market value prepared by a licensee for pricing purposes. It is not a certified appraisal under USPAP and cannot be used for mortgage underwriting, which requires a licensed or certified appraiser.

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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