Question 64

A Comparative Market Analysis is a comparison of recently sold homes similar to the seller's property.

A Comparative Market Analysis (CMA) specifically evaluates recently sold homes that are comparable to the seller's property in order to determine an appropriate market value. This approach helps sellers understand how their property measures up against similar listings in the market.

A) past real estate appraisals.

While past real estate appraisals can provide some context, a CMA focuses more on current market conditions and recent sales rather than historical appraisals. Therefore, this option does not accurately reflect the purpose of a CMA.

B) appraisal feasibility studies.

Appraisal feasibility studies assess the potential value of a property based on various factors, but they are not the same as a CMA. A CMA specifically analyzes comparable properties that have recently sold, making this option incorrect.

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

Although median property values provide useful information about the overall market, a CMA goes further by comparing individual properties that have recently sold. Thus, this option does not capture the precise context of a CMA.

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

This option accurately describes the essence of a Comparative Market Analysis. A CMA involves evaluating recently sold properties that are similar in type, size, and location to provide a realistic assessment of the seller's property's market value.

Conclusion

The correct answer, D, highlights the essential function of a Comparative Market Analysis by focusing on recently sold homes similar to the seller's property. Other options fail to capture this specificity, as they either refer to unrelated processes or broader market metrics. Thus, D is the only option that directly aligns with the purpose of a CMA in real estate.