Which term describes determining market value by comparing to other homes?

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Multiple Choice

Which term describes determining market value by comparing to other homes?

Explanation:
Valuing a property by comparing it to recently sold and listed properties in the area is done through a competitive market analysis. A CMA is the broker’s tool to estimate market value by examining comparable sales and adjusting for differences in size, condition, and features. This comparison-based method helps set a realistic listing price or offer. Assemblage refers to combining parcels to create a larger property; external obsolescence is value loss from external factors; diminishing returns describes how additional improvements yield progressively smaller increases in value. So the term that fits is competitive market analysis.

Valuing a property by comparing it to recently sold and listed properties in the area is done through a competitive market analysis. A CMA is the broker’s tool to estimate market value by examining comparable sales and adjusting for differences in size, condition, and features. This comparison-based method helps set a realistic listing price or offer. Assemblage refers to combining parcels to create a larger property; external obsolescence is value loss from external factors; diminishing returns describes how additional improvements yield progressively smaller increases in value. So the term that fits is competitive market analysis.

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