Humber/Ontario Real Estate Course 3 Exam Practice

When preparing a comparative market analysis, what is the salesperson doing?

1. Summarizing average local prices and sale ratios

2. Setting a listing price without seller input

3. Providing market data to help the seller set a listing price

4. Exclusively relying on currently listed properties

5. Determining the highest price the property can sell for

6. Ignoring market trends and buyer demands

The correct answer is: Providing market data to help the seller set a listing price

When preparing a comparative market analysis, the salesperson is providing market data to help the seller set a listing price. This involves analyzing recent sales of comparable properties in the area, current market trends, and other relevant data to assist the seller in determining a competitive listing price for their property. This process helps ensure that the property is not overpriced or underpriced, maximizing the chances of a successful sale at the best possible price. Options A, B, D, E, and F are incorrect: - Option A is incorrect because preparing a comparative market analysis involves more than just summarizing average local prices and sale ratios. - Option B is incorrect because setting a listing price without seller input goes against the collaborative process of determining the best listing price based on market data and the seller's goals. - Option D is incorrect because relying exclusively on currently listed properties may not provide an accurate picture of the market, as it does not account for recent sales data. - Option E is incorrect because determining the highest price the property can sell for is not the primary aim of a comparative market analysis, which aims to find a competitive and realistic listing price. - Option F is incorrect because ignoring market trends and buyer demands would not result in an effective comparative market analysis