Property Valuation
A Comparative Market Analysis (CMA) prepared by a real estate agent is:
AA licensed appraisal that can be used for mortgage lending
BAn informal estimate of value to help a client price a property, not a formal appraisal✓ Correct
CRequired by California law before any listing can be taken
DOnly valid for 30 days after preparation
Explanation
A CMA is an informal tool used by real estate agents to help clients understand the market and set a listing price. It is NOT a certified appraisal and cannot be used to satisfy lender requirements for loan approval.
Related California Property Valuation Questions
- The economic principle of 'plottage' refers to:
- According to the principle of 'contribution,' an improvement adds value to a property:
- What does the term 'market value' mean in real estate appraisal?
- The principle of conformity states that:
- An appraiser values a property using the sales comparison approach and finds that a comparable property has a swimming pool worth $15,000 but the subject property does not. What adjustment does the appraiser make?
- An appraiser determines a property has a capitalization rate of 8% and a NOI of $80,000. What is the estimated value?
- Which appraisal approach is most commonly used for single-family homes?
- An appraiser is reconciling three value indicators from the three approaches: Cost approach = $485,000; Sales comparison approach = $475,000; Income approach = $460,000. The subject is an owner-occupied single-family home. Which approach should receive the most weight?
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