Humber/Ontario Real Estate Course 4 Exam Practice

What is a comparative market analysis typically limited to?

1. Properties that have sold in the past week.

2. Comparable properties within a specific neighborhood.

3. Only properties currently listed on the market.

4. High-value properties in exclusive areas.

5. Properties listed in the last six months.

6. Properties listed above a certain price point.

The correct answer is: Comparable properties within a specific neighborhood.

A comparative market analysis (CMA) is typically focused on comparable properties within a specific neighborhood. This approach allows real estate professionals to assess the value of a property based on its proximity to similar homes, considering various factors such as size, condition, age, and unique features. By limiting the analysis to a specific area, the CMA ensures that the comparison is relevant and reflects the local market dynamics, such as supply and demand in that neighborhood. Using comparable properties is crucial for establishing a price point that is reflective of the market. This localized analysis helps both sellers and buyers make informed decisions by providing insight into recent sales trends and pricing strategies within the community. Other options, while they sometimes include relevant information, do not specifically focus on the essential aspect of a CMA, which is its comparative nature within a defined location. For example, looking at properties that have recently sold or are currently listed may provide useful data but isn't as precise as focusing strictly on comparables within a neighborhood.