CRS Market Analysis and Comparative Market Analysis (CMA)

Question 1

What is a Comparative Market Analysis (CMA) and what is its primary purpose?

Accepted Answer

An agent-prepared analysis using recent comparable sales to estimate a property's market value

Answer

A government appraisal required by law before every sale

Answer

A lender's assessment of the borrower's ability to repay a mortgage

Answer

A title company report comparing ownership histories of similar properties

Question 2

In a CMA, what does a 'pending' listing indicate?

Accepted Answer

A property is under contract but has not yet closed

Answer

The listing has expired without a sale

Answer

The seller has temporarily withdrawn the property from the market

Answer

The listing agent has reduced the price recently

Question 3

What is the primary criteria for selecting comparable sales in a residential CMA?

Accepted Answer

Properties that are similar in size, age, condition, features, and location, sold recently

Answer

Properties in the same state with similar listing agent history

Answer

Only properties listed by the same brokerage

Answer

Properties with the highest sale prices to maximize the seller's pricing position

Question 4

What does 'days on market' (DOM) indicate in a CMA analysis?

Accepted Answer

How long a property took to go under contract, indicating demand and pricing accuracy

Answer

The number of days the listing agent has held the listing

Answer

The number of showings the property received before selling

Answer

The seller's flexibility on closing date based on time on market

Question 5

What adjustment is typically made in a CMA when a comparable property has a garage and the subject property does not?

Accepted Answer

Deduct the estimated value of the garage from the comparable's sale price

Answer

Increase the comparable's sale price by the garage value to adjust upward

Answer

No adjustment is needed for features like garages

Answer

Double the value of the garage and add it to the subject property's price

Question 6

What does 'absorption rate' measure in a real estate market analysis?

Accepted Answer

How quickly available homes are being sold in a given market over a specific period

Answer

The rate at which moisture is absorbed by a home's foundation materials

Answer

The percentage of buyers who obtain financing after applying

Answer

The rate at which a property depreciates relative to neighborhood averages