Question 23

A comparative market analysis (CMA) must be prepared by a licensed real-estate broker.

A comparative market analysis (CMA) is a tool used by real estate professionals, specifically licensed real-estate brokers, to evaluate property values based on recent sales of similar properties in the area.

A) a certified appraiser

While a certified appraiser is qualified to determine property values, they are not specifically required to conduct a CMA. A CMA is typically performed by real estate brokers who use their knowledge of the market and recent sales data to provide insights for pricing properties, making this option incorrect.

B) a licensed real-estate broker

This is the correct answer, as licensed real-estate brokers are trained and authorized to prepare CMAs. They utilize their expertise to analyze the market and provide accurate pricing recommendations based on comparative data.

C) any real-estate licensee

Not all real estate licensees are necessarily trained to conduct a CMA at the same level as a licensed real-estate broker. While they may have some knowledge of the process, it is the brokers who typically have the experience and responsibility to produce detailed and accurate CMAs, making this option less accurate than B.

D) a Certified Public Accountant

A Certified Public Accountant (CPA) typically specializes in financial reporting and tax matters and does not focus on real estate transactions or property valuations. Therefore, a CPA would not be the correct individual to prepare a CMA, making this option incorrect.

Conclusion

A licensed real-estate broker is specifically trained and authorized to conduct a comparative market analysis, which is essential for determining property values accurately. Other options, such as certified appraisers or CPAs, do not hold the same level of specialization in real estate market analysis, thereby making them unsuitable for this task.