Michigan Real Estate Exam Practice Question
Which is true about a comparative market analysis (CMA)?
Correct Answer: B
Rationale: A comparative market analysis (CMA) serves as a broker's opinion of a property's value based on recent sales of similar homes in the area, helping sellers and buyers make informed decisions.
Option A is incorrect; a CMA is not an appraisal and is not specifically for insurance purposes. Option C misrepresents a CMA, as it does not derive its value from local tax assessments but rather from market data. Option D is also wrong; a CMA does not relate to a "circular bank buyer's need" and does not focus on tax line values. Thus, the CMA is primarily a broker's assessment of market conditions and property value.
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