North Dakota Real Estate Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The primary purpose of conducting a comparative market analysis (CMA) is to evaluate the value of a property based on similar recent sales. A CMA provides real estate professionals with a systematic way to assess the current market value of a property by comparing it to recently sold properties that share similar characteristics, such as location, size, and condition. This analysis enables agents and clients to make informed decisions regarding pricing strategies in the current market, whether for selling a property or making a purchase offer.

When a CMA is performed, it takes into account various factors like the sale prices of comparable homes (often referred to as "comps"), the time those homes were on the market, and specific attributes of the properties. This thorough approach to valuation helps ensure that the suggested price reflects the true market demand, thus increasing the likelihood of a successful transaction.

In contrast, estimating future property values incorporates predicting trends and is not the direct focus of a CMA, which is based on historical data. Documenting selling prices for zoning applications doesn't pertain to the primary goals of a CMA, as zoning is more closely related to land-use regulations rather than market analysis. Lastly, while analyzing rental market trends can provide useful insights, it does not serve as the cornerstone of a CMA, which