Humber/Ontario Real Estate Course 4 Exam Practice

What should a salesperson rely on when advising a seller about a listing price?

1. Broad market surveys and national trends.

2. Comparable property data, both sold and unsold, in the relevant local market.

3. Historic data of neighborhood sales from five years ago.

4. Insights from neighboring property owners.

5. Real estate advertisements from property magazines.

6. Speculative forecasts about future market conditions.

The correct answer is: Comparable property data, both sold and unsold, in the relevant local market.

When advising a seller about a listing price, the most reliable approach is to use comparable property data, both sold and unsold, in the relevant local market. This method, often referred to as a Comparative Market Analysis (CMA), allows the salesperson to provide a pricing strategy based on real, recent transactions and active listings that are similar to the property in question. Utilizing comparable property data helps ensure that the price reflects the current market dynamics and conditions, leading to a more accurate and competitive listing price. It is essential because it takes into account factors such as location, size, condition, and features of the properties, providing a solid foundation for pricing decisions. While other options may provide some level of insight, they do not offer the same level of specificity and relevance to the current market. For instance, broad market surveys and national trends can be overly generalized and may not reflect local conditions accurately. Although historic sales data can be informative, relying solely on data from five years ago may not capture recent trends that could affect property values today. Insight from neighboring property owners can be anecdotal and not based on market analysis, while real estate advertisements might not provide a true reflection of actual sale prices or market sentiments. Speculative forecasts about future market conditions can be