Humber/Ontario Real Estate Course 4 Exam Practice

If a seller insists on a listing price higher than recommended by the salesperson, what is the correct course of action?

1. The seller is free to select a listing price based on personal judgment.

2. The seller must agree to the recommended listing price since CMA comparables are indicative of market conditions.

3. The seller should agree to the recommended listing price because the CMA is highly accurate.

4. The salesperson should immediately advise the seller that a higher listing price will diminish interest and the property may remain unsold for an extended period.

5. The seller must insist on a lower price according to the salesperson.

6. The seller should trust the market trends and adjust prices accordingly.

The correct answer is: The seller is free to select a listing price based on personal judgment.

The correct course of action is that the seller is free to select a listing price based on personal judgment. In real estate transactions, while a salesperson provides informed recommendations supported by data such as Comparative Market Analysis (CMA), the final decision rests with the seller. Sellers have the right to establish the listing price according to their own preferences, financial goals, or personal perceptions of their property's value. This autonomy is crucial as it respects the seller's authority over their own asset. While the salesperson's expertise and market insights can guide the seller towards a more competitive price that aligns with market trends, ultimately it is the seller's prerogative to set a different price if they choose to do so. This highlights the balance between professional advice and the sellers’ control over their own sales strategy. The other suggestions imply limitations on the seller's decision-making power or a disregard for their personal judgment, which does not accurately reflect the seller's rights in the real estate process.