Agency
A Pennsylvania listing agent who prepares a Competitive Market Analysis (CMA) for a potential seller client should advise the seller that the CMA is:
AAn official appraisal that can be used for loan purposes
BAn estimate of market value based on comparable sales, not an appraisal — for listing price guidance only✓ Correct
CA guaranteed sale price if the property is priced at the CMA value
DSubject to PREC approval before being provided to clients
Explanation
A CMA prepared by a Pennsylvania licensee is not an appraisal — it is an estimate of market value using sales comparison principles for the purpose of recommending a listing price. Only licensed appraisers can prepare certified appraisals.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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