What term is used for a value estimate based on recent sales of similar properties in the same neighborhood?

• A. Broker price opinion (BPO)
• B. Comparative market analysis (CMA)
• C. Appraisal
• D. Market rent estimate

Answer: (B)

A Comparative Market Analysis, or CMA, is used to estimate a property's market value by looking at recently sold, similar homes in the same neighborhood. The idea is to compare features like size, age, condition, and upgrades, and to examine how those comps sold recently to gauge what the subject property might reasonably fetch. By focusing on recent transactions in the local market, a CMA reflects current demand and pricing trends, helping a broker advise on a realistic listing price.

Other terms serve different purposes: a broker price opinion is a lender-focused estimate often with fewer comps and less formal methodology; an appraisal is a licensed, formal valuation using rigorous standards and a detailed report; a market rent estimate focuses on rental value rather than sale price.