Humber/Ontario Real Estate Course 4 Exam Practice

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

Assists the seller in establishing a listing price by providing relevant market information.
Bases the report solely on properties that are currently listed for sale.
Establishes a listing price without the seller's input.
Provides comparative data while ignoring the neighborhood market indicators.
Summarizes local market indicators such as 'average price' and 'list to sale price ratio.'
Uses speculative future market data for analysis.

The correct answer is: Assists the seller in establishing a listing price by providing relevant market information.

The correct choice highlights the essential role of the salesperson in facilitating the pricing process for the seller. In preparing a comparative market analysis (CMA), the salesperson's primary responsibility is to gather and provide relevant market information that helps the seller understand the current real estate landscape. This includes analyzing recent sales of comparable properties, current listings, and market trends to assist the seller in making informed decisions about setting an appropriate listing price. By engaging with the seller and discussing the market data, the salesperson ensures that the price reflects both the current market conditions and the seller's expectations. This collaborative approach fosters trust and helps position the property competitively within the market. Other choices reflect practices that are not aligned with the effective role of a salesperson. For instance, basing a CMA solely on properties currently listed ignores important data from recent sales that are critical for understanding real market value. Establishing a listing price without input from the seller undermines the collaborative nature of the relationship and may lead to dissatisfaction. Ignoring neighborhood indicators limits the analysis and could provide a skewed perspective on the property's value. Finally, utilizing speculative future market data does not provide a reliable basis for pricing, as it is essential to focus on actual, current trends and historical data when performing a CMA.