Which term would a real estate professional use to estimate value by comparing similar sold properties?

• A. Competitive Market Analysis
• B. Contribution
• C. External Obsolescence
• D. Assemblage

Answer: (A)

Estimating value by comparing similar sold properties is done with a competitive market analysis. A CMA uses recent sales of comparable properties—same neighborhood, similar size, features, and condition—to gauge what the subject property might reasonably sell for. By examining the prices achieved for these comps and adjusting for differences (such as lot size, updates, or time on the market), a real estate professional arrives at a realistic listing price or offer range. It’s a practical, market-driven tool that reflects current conditions and activity, though it’s not the same as a formal appraisal used by lenders.

Other concepts in the choices don’t fit this purpose. Contribution refers to the value added by improvements to a property. External obsolescence is a decrease in value from external factors like nearby nuisances or zoning changes. Assemblage is the process of combining parcels to create a larger, more valuable property.