Property Valuation
An appraisal is different from a competitive market analysis (CMA) primarily because:
AA CMA is more accurate than an appraisal
BAn appraisal is conducted by a licensed/certified appraiser and meets USPAP standards; a CMA is prepared by a real estate licensee as a sales tool✓ Correct
CA CMA is required for all mortgage transactions while an appraisal is optional
DAn appraisal is done only for commercial properties
Explanation
An appraisal is a formal, USPAP-compliant valuation performed by a licensed or certified appraiser and required by lenders for mortgage financing. A CMA is an informal analysis prepared by a licensee to assist in pricing, not for lending.
Related Arkansas Property Valuation Questions
- The income approach to value is most commonly used to appraise:
- An appraiser makes a positive adjustment to a comparable sale when the comparable:
- The cost approach to value is most reliable for:
- A capitalization rate derived from market transactions is called a(n):
- Accrued depreciation in the cost approach equals:
- An appraiser is required to be an 'independent, disinterested third party.' This means the appraiser:
- The income multiplier approach is most reliable for:
- Price differs from value in real estate because price is:
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