Property Valuation
A Colorado real estate broker preparing a 'Comparative Market Analysis' (CMA) for a seller should:
AA. Use the same methodology as a licensed appraiser
BB. 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✓ Correct
CC. Guarantee the property will sell at the CMA price
DD. Only use sold properties from the past 5 years
Explanation
A CMA is prepared by a real estate broker (not an appraiser) to assist a seller in setting a competitive listing price. It uses comparable sold listings, active competition, and market trends. A CMA is not an appraisal and should be presented as a pricing opinion, not a certified valuation. The broker should use the most recent and relevant comparables available.
Related Colorado Property Valuation Questions
- In Colorado, an appraiser performing a 'desk appraisal' (or desktop appraisal) relies primarily on:
- A Colorado appraiser determines: new building cost = $200,000, land value = $75,000, accrued depreciation = $40,000. What is the indicated value using the cost approach?
- When performing a sales comparison approach, an appraiser adjusts for differences between the subject property and comparables. If a comparable has a feature the subject lacks, the appraiser should:
- An appraiser in Colorado uses 3 comparable sales to value a property. The adjusted values are $385,000, $392,000, and $395,000. What is the most likely final value indication from reconciliation?
- Under Colorado appraisal standards, USPAP requires that an appraiser's report include:
- USPAP (Uniform Standards of Professional Appraisal Practice) requires all licensed Colorado appraisers to:
- A Colorado property owner who disagrees with their county-assessed value should first appeal to:
- Colorado's 'mass appraisal' process used by county assessors differs from an individual appraisal in that it:
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