Property ValuationIntermediateArizona Exam

In Arizona, a Comparative Market Analysis (CMA) prepared by a real estate agent is:

AA licensed appraisal performed by a real estate agent under delegated authority from a certified appraiser, sufficient for conventional loan underwriting purposes
BAn informal estimate of value used for listing price or offer decisions, not a substitute for an appraisalCorrect
CA formal value opinion required by Arizona law before a property can be listed on the MLS, prepared using the USPAP standards applicable to licensed appraisers
DA binding statement of market value that the seller can rely on in court if the property sells below the stated CMA price due to the agent's negligent analysis

Why An informal estimate of value used for listing price or offer decisions, not a substitute for an appraisal Is Correct

Answer B: An informal estimate of value used for listing price or offer decisions, not a substitute for an appraisal

A CMA is an informal tool using recent comparable sales to estimate market value for listing or buying decisions. It is not a formal appraisal, does not carry the same professional standards or liability, and cannot be used in lieu of an appraisal for mortgage purposes.

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.

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