Colibri Real Estate 30-Hour Alabama Post License Practice Exam

A Comparative Market Analysis (CMA) is made between properties with similar what factors?

1. Size and amenities

2. Location, age, style, and features

3. Owner history and sales records

4. Market strategies and pricing

The correct answer is: Location, age, style, and features

A Comparative Market Analysis (CMA) is an important tool in real estate used by agents to determine a property's potential market value by comparing it to similar properties. The effectiveness of a CMA relies heavily on comparing properties that share several key characteristics. When selecting properties for comparison, factors such as location, age, style, and features are crucial. Location is vital because it directly influences property value; homes in sought-after neighborhoods tend to have higher values. The age of a property can affect its condition and desirability; newer homes may have more modern amenities and fewer repairs needed. The style of the property plays a significant role as well, as different architectural styles appeal to different buyers. Finally, features—such as the number of bedrooms and bathrooms, garage spaces, and outdoor areas—help determine how comparable two properties are in the eyes of potential buyers and assess their overall appeal. The other choices, while relevant in different contexts, do not address the most critical components of a CMA. Size and amenities might be part of the analysis but do not encompass the broader similarities needed for effective comparisons. Owner history and sales records can provide context and background but are not direct factors that determine how closely properties relate in market value. Market strategies and pricing frameworks are more about