Question 10

A Comparative Market Analysis compares recently sold homes similar to the seller's property.

A Comparative Market Analysis (CMA) conducted by a real estate agent focuses on comparing recently sold homes that share similar characteristics with the seller's property to determine a fair market value.

A) past real estate appraisals.

Past real estate appraisals are not the primary focus of a CMA, as appraisals are formal evaluations conducted for specific properties at particular points in time. While they may provide some context, they do not directly inform the comparison with recent sales necessary for a CMA.

B) appraisal feasibility studies.

Appraisal feasibility studies assess whether a property can be appraised at a certain value based on various factors, but they do not involve comparing recently sold homes. Therefore, they do not align with the purpose of a CMA, which is to evaluate current market conditions against similar properties.

C) median property values in the seller's market.

Median property values can provide useful market insights but do not offer the specific comparisons needed for a CMA. A CMA requires an analysis of recently sold homes that closely match the seller's property, rather than general median values.

D) recently sold homes similar to the seller's property.

This option is correct as a CMA specifically involves analyzing recently sold homes that are comparable to the seller's property. This comparison allows the agent to determine a competitive market price that reflects current trends and conditions in the seller's local market.

Conclusion

The correct answer, D, highlights the essence of a Comparative Market Analysis, which is to assess properties recently sold that are similar to the seller's home. Options A, B, and C do not provide the necessary comparative data needed for a CMA, making them less relevant in determining the appropriate market value for the seller's property. Thus, D stands out as the definitive choice for this question.