Which of the following is true about a competitive market analysis?

While a competitive market analysis can provide useful information regarding property values, it is not specifically designed for insurance purposes. Insurance appraisals typically require a different approach focused on risk assessment and coverage needs rather than comparative market data.

A CMA is not primarily aimed at establishing depreciable value, which is more commonly determined by accounting methods for tax purposes. Depreciable value refers to the reduction in value of an asset over time due to wear and tear, obsolescence, or market conditions, rather than the comparative analysis of local property sales.

A competitive market analysis relies on current market data and comparable sales rather than solely on local tax assessments. Tax assessments may not reflect the true market value of properties, as they can be outdated or based on different criteria than those used in a CMA.