Before listing a property, a licensee should perform a competitive market analysis (CMA) to determine what?

• A. To determine the listing price
• B. To secure financing
• C. To prepare a sales contract
• D. To estimate closing costs

Answer: (B)

A CMA is used to estimate how much a property should be listed for by comparing it to similar recently sold, currently listed, and expired properties, while also considering current market conditions. This data helps set a price that is competitive and realistic, maximizing interest from buyers and reducing time on market. Financing decisions, loan terms, and approvals come from the buyer and lender, not from the CMA. A sales contract is created after an offer is made and accepted, based on negotiated terms, not the CMA. Closing costs are estimated from lender and title/escrow charges, not from market comparisons. So the CMA’s main purpose before listing is to determine the listing price.