Florida Real Estate Sales Associate Examination Content OutlineReal Estate Valuation and Market AnalysisEasy
When performing a comparative market analysis (CMA), a real estate sales associate should prioritize selecting comparable properties that are:
- AForeclosed properties, as they represent the lowest possible market value.
- BProperties that have been on the market for an extended period, indicating buyer resistance.
- CRecently sold, similar in size and features, and located in the same market area.
- DCurrently listed for sale in the same neighborhood.
Show answer & explanationAnswer & explanation
Correct answer: C. Recently sold, similar in size and features, and located in the same market area.
The most reliable comparables for a CMA are properties that have recently sold, are highly similar to the subject property in terms of physical characteristics and features, and are located within the same competitive market area. These provide the best indication of what a buyer is willing to pay.
Why the other options are wrong
- A. Foreclosures often sell below market value due to distressed circumstances and may not reflect true market value for a non-distressed sale.
- B. Expired/long-listed properties show what buyers are NOT willing to pay, not what a property is worth.
- D. Active listings show asking prices, not what properties actually sell for; useful for market trends but not primary comparables.
CMA Comparable Selection
The process of identifying and selecting properties that have recently sold and are similar to the subject property to estimate its market value.
- Prioritize 'sold' properties over 'active' or 'expired' listings.
- Look for properties with similar age, size, condition, amenities, and location.
- Generally, comparables should be within the last 3-6 months and close proximity.
Memory trick: For a good CMA, hunt for comps that are SOS: Sold, Similar, and close!