Real Estate Appraisal Practice Exam

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Prepare for the Real Estate Appraisal Exam with tailored questions and explanations. Boost your knowledge and confidence to succeed in your appraisal exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Who is typically responsible for performing a Comparative Market Analysis (CMA) or a Broker Price Opinion (BPO)?

Real estate licensee
Certified real estate appraiser
Real estate investor
Property manager

The correct answer is: Real estate licensee

A Comparative Market Analysis (CMA) and a Broker Price Opinion (BPO) are typically conducted by real estate licensees. These professionals leverage their understanding of the local market, recent sales data, and various property features to estimate the value of a property. Their expertise allows them to analyze comparable properties and provide clients with informed opinions about pricing strategies. In contrast, a certified real estate appraiser is more focused on providing formal appraisals that comply with specific legal and industry standards, often involving a more detailed and systematic approach to valuation that may not be accessible to all real estate professionals. While real estate investors and property managers may have substantial knowledge about property values, their primary roles are different—investors focus on buying and managing investment properties, and property managers handle day-to-day operations of rental properties. Thus, the role of performing a CMA or BPO primarily falls to licensed real estate professionals who can accurately interpret market conditions and trends.