A Colorado real estate broker preparing a 'Comparative Market Analysis' (CMA) for a seller should:
Why B. Use recent comparable sales, active listings, and pending sales to estimate a competitive listing price range, while noting that a CMA is not an appraisal Is Correct
Answer B: B. Use recent comparable sales, active listings, and pending sales to estimate a competitive listing price range, while noting that a CMA is not an appraisal
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.
Key Property Valuation Terms in This Question
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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