Property Valuation
A Competitive Market Analysis (CMA) prepared by a real estate licensee differs from a formal appraisal in that:
AA CMA is more legally binding than a formal appraisal
BA CMA is prepared by a licensed appraiser and a formal appraisal is not
CA CMA is an informal opinion of value that cannot be used as an appraisal for lending purposes✓ Correct
DA CMA must comply with USPAP standards; a formal appraisal does not
Explanation
A CMA is an informal market analysis prepared by a real estate licensee to help price a property. It cannot substitute for a USPAP-compliant appraisal by a licensed appraiser for federally related mortgage lending purposes.
Related California Property Valuation Questions
- The principle of substitution in appraisal holds that:
- The income approach to value is most appropriate for which type of property?
- A neighborhood is zoned residential but has deteriorating properties, declining rents, and increasing vacancies. What stage of the neighborhood life cycle does this describe?
- In the cost approach, what is 'reproduction cost' vs. 'replacement cost'?
- What is the cost approach to value?
- The cost approach to value is best suited for:
- The principle of conformity states that:
- When does the income approach provide the MOST reliable value indication?
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