Property Valuation
A New York appraiser is performing a 'comparative market analysis' (CMA). This is different from an appraisal because:
AA CMA is legally equivalent to a certified appraisal
BA CMA is typically prepared by a real estate agent to assist in pricing a property and is not a certified appraisal✓ Correct
CA CMA uses only the cost approach
DA CMA can only be prepared by a licensed appraiser
Explanation
A Comparative Market Analysis (CMA) is prepared by a real estate agent (not a licensed appraiser) to estimate a property's value by comparing recent sales of similar properties. It is an informal pricing tool, not a certified appraisal. Banks and lenders require a certified appraisal performed by a licensed or certified appraiser for mortgage underwriting.
Related New York Property Valuation Questions
- In New York, the 'highest and best use' of a property is the use that is:
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- In New York, the 'principle of substitution' underpins which approach to value?
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