Kovats Real Estate School Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What is the primary purpose of a comparative market analysis (CMA)?

To determine the mortgage options for buyers

To estimate a property's value based on similar property sales

The primary purpose of a comparative market analysis (CMA) is to estimate a property's value based on the sales of similar properties in the area. This process involves analyzing recently sold homes that are comparable in terms of location, size, condition, and other relevant characteristics. By examining these comparable properties, real estate professionals can calculate a reasonable value for the subject property, taking into account current market conditions and trends.

This estimation is crucial for pricing a property correctly when listing it for sale or determining a fair offer when a buyer is interested. The CMA provides data that helps both sellers and buyers make informed decisions, ensuring that properties are bought and sold at competitive prices reflective of the current market conditions.

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To assess the rental income potential of a property

To evaluate the condition of a property prior to sale

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