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 CMA uses recently sold, active, and expired comparable properties to help sellers price accurately or buyers determine a fair offer price.

Question 2

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

Accepted Answer

A property is under contract but has not yet closed

Answer

Pending sales reflect accepted offers and provide the most current signal of where the market is heading, though they can't be relied upon as closed comparables until final sale prices are available.

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

Comps must mirror the subject property in key physical and locational attributes to produce a meaningful and defensible market value estimate.

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

High DOM can signal overpricing or buyer hesitation; low DOM suggests strong demand, helping agents advise sellers on competitive pricing strategy.

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

When a comparable has a feature the subject lacks, its sale price is reduced by that feature's estimated value to arrive at an adjusted price more reflective of the subject property.

CRS - Certified Residential Specialist Practice Test

CRS - Certified Residential Specialist Practice Test

CRS Market Analysis and Comparative Market Analysis (CMA)