Property Valuation
What is the purpose of a Comparative Market Analysis (CMA) as used by real estate agents?
ATo provide a certified appraisal for mortgage lending
BTo help sellers determine an appropriate listing price and help buyers evaluate offers using recent comparable sales✓ Correct
CTo assess property taxes for the county assessor
DTo calculate insurance replacement cost for the property owner
Explanation
A CMA is prepared by a real estate agent (not a licensed appraiser) to help clients price a property for sale or evaluate an offer. It analyzes recent comparable sales, active listings, and expired listings. A CMA is not a certified appraisal and cannot be used for mortgage underwriting.
Related California Property Valuation Questions
- The income approach to value is most appropriate for:
- An appraiser conducting 'paired sales analysis' is attempting to:
- In the sales comparison approach, the appraiser makes adjustments to the comparable sales to account for differences from the subject property. If a comparable has a feature the subject lacks, the adjustment is:
- When a property is over-improved relative to its neighborhood, the excess value added by the improvement is called:
- What is the cost approach to value?
- Which appraisal approach is most commonly used for single-family homes?
- What is 'assessed value' and how does it relate to market value in California?
- When using the age-life method to estimate accrued depreciation, the depreciation percentage is calculated by dividing effective age by:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →