Humber/Ontario Real Estate Course 3 Exam Practice

What does a comparative market analysis present to a seller?

1. A:Comparison with similar properties in the market.

2. B:Replacement for a formal appraisal.

3. C:Must be signed by the presenting registrant.

4. D:Analysis limited to properties in the immediate area.

5. E:Forecasting future market trends.

6. F:Optional valuation for the seller's property.

The correct answer is: A:Comparison with similar properties in the market.

A comparative market analysis (CMA) is a valuable tool for sellers as it provides an in-depth comparison of similar properties currently on the market, those that have recently sold, and those that did not sell. This information helps sellers understand the current market conditions and establish a competitive and realistic asking price for their property. The focus on comparable properties allows the seller to gauge where their home stands in relation to other similar homes, taking into account factors such as size, location, condition, and amenities. The other options do not accurately capture the primary purpose of a CMA. While it is not a replacement for a formal appraisal, which is an official assessment conducted by a licensed appraiser, the CMA serves a different purpose. It does not necessarily require a signature from the registrant presenting it, nor is it limited strictly to immediate area properties, as it can include a broader range of comparable sales. Finally, a CMA is not a forecasting tool for future market trends; instead, it analyzes current and past sales data to inform pricing for the seller's property.