Property Valuation
What is a 'market analysis' versus an 'appraisal' in Nevada real estate?
AThey are the same and can be used interchangeably for loan qualification
BA market analysis (CMA) is prepared by a licensed real estate agent to estimate listing or purchase price; an appraisal is a formal opinion of value prepared by a licensed/certified appraiser under USPAP and is required for mortgage lending✓ Correct
CAn appraisal is less reliable than a CMA for pricing a home in Nevada
DBoth require the same level of licensing and professional standards
Explanation
A Comparative Market Analysis (CMA) is an informal estimate prepared by a real estate agent using recent sales and current listings to help clients make pricing decisions. It is NOT an appraisal and cannot be used to qualify for a loan.
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Key Terms to Know
Appraisal
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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