Humber/Ontario Real Estate Course 4 Exam Practice

Which is an incorrect approach when discussing a comparative market analysis (CMA) with a seller?

1. Providing a comprehensive discussion on comparable sales.

2. Offering data on past and current market trends.

3. Assuming accurate facts prevent overpricing.

4. Objectively discussing the seller’s home compared to others.

5. Giving detailed insights supports the pricing decision.

6. Presenting historical data for informed pricing.

The correct answer is: Assuming accurate facts prevent overpricing.

When discussing a comparative market analysis (CMA) with a seller, it's essential to convey accurate and objective information that helps the seller understand the market and the pricing for their property. Assuming that presenting accurate facts alone can prevent overpricing is an incorrect approach because it overlooks the psychology involved in real estate transactions. Sellers may have emotional attachments to their homes or be influenced by market conditions that fall outside of the data. While providing comprehensive analyses, discussing market trends, objectively comparing the seller's home to others, and presenting detailed and historical data are all valuable elements of a CMA, creating the assumption that facts alone will lead to a correct pricing outcome can result in a misalignment between the seller's expectations and market realities. Engaging with the seller on the nuances of market perception and their personal motivations is key to effectively guiding them toward an appropriate listing price.