PSI Oklahoma Real Estate Practice Test

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Prepare for the Oklahoma Real Estate Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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When is a Comparative Market Analysis (CMA) most appropriately used?

To determine the cost to replace a property.
To appraise a property with no recent sales.
To provide an estimate of property value based on recent sales.
To identify zoning regulations affecting property use.

The correct answer is: To provide an estimate of property value based on recent sales.

A Comparative Market Analysis (CMA) is most appropriately used to provide an estimate of property value based on recent sales. This tool allows real estate professionals to evaluate the value of a property by comparing it to similar properties that have recently sold in the same area. The methodology includes analyzing key aspects of the properties, such as size, condition, location, and features, to derive an informed price estimate that reflects current market trends. Using a CMA is particularly relevant for pricing strategies when listing a property for sale or making an offer on a property. It serves as a practical means for agents and their clients to make well-informed decisions regarding property transactions, ensuring they are competitive in the market. The other options do not align with the essential function of a CMA, as replacing a property or appraising one with no recent sales would require different approaches—such as cost estimations or professional appraisals—rather than a market analysis based on comparative sales. Additionally, identifying zoning regulations is unrelated to the valuation process, as zoning deals more with the permissible uses of a property than its market value.