Which report compares the prices of recently sold or listed homes to estimate the market value of a similar property?

Which report compares the prices of recently sold or listed homes to estimate the market value of a similar property?

• A. Property valuation report
• B. Comparative market analysis
• C. Investment analysis
• D. Market survey

Answer: (B)

The comparative market analysis (CMA) is the correct choice because it involves a detailed examination of recent sales data and listing prices of similar properties in a specific area. The primary goal of a CMA is to help estimate the fair market value of a property based on the sale prices of comparable homes, often referred to as “comps.” In conducting a CMA, real estate professionals assess various factors such as location, size, condition, and amenities of the properties in question. By analyzing these comparable properties, they can provide an informed estimate of what a similar property should sell for, taking into account current market trends. The other options do not specifically fulfill this function: a property valuation report may provide a more formal appraisal by a certified appraiser, an investment analysis focuses on the potential financial advantages of an investment property rather than its market value, and a market survey may encompass broader trends but does not offer the specific comparative analysis that a CMA provides.

The comparative market analysis (CMA) is the correct choice because it involves a detailed examination of recent sales data and listing prices of similar properties in a specific area. The primary goal of a CMA is to help estimate the fair market value of a property based on the sale prices of comparable homes, often referred to as “comps.”

In conducting a CMA, real estate professionals assess various factors such as location, size, condition, and amenities of the properties in question. By analyzing these comparable properties, they can provide an informed estimate of what a similar property should sell for, taking into account current market trends.

The other options do not specifically fulfill this function: a property valuation report may provide a more formal appraisal by a certified appraiser, an investment analysis focuses on the potential financial advantages of an investment property rather than its market value, and a market survey may encompass broader trends but does not offer the specific comparative analysis that a CMA provides.