Humber/Ontario Real Estate Course 4 Exam Practice

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Which statement is true about a comparative market analysis (CMA)?

A CMA is used by appraisers to estimate the value of a property.
A CMA includes comparables that are for sale and those sold within 12 months.
A CMA must be signed by the salesperson preparing it.
A CMA can guide discussions with the seller in establishing a listing price.

The correct answer is: A CMA can guide discussions with the seller in establishing a listing price.

A comparative market analysis (CMA) is a tool commonly used by real estate agents to help determine a reasonable listing price for a property. It involves analyzing recently sold properties (comparables) in the area to assess the market value of the subject property. By looking at comparable properties that have recently sold, real estate agents can get a better understanding of the current market conditions and make informed recommendations to the seller regarding the listing price. Therefore, option D is the correct statement about a comparative market analysis. Option A is incorrect because while a CMA is similar to an appraisal in that it helps estimate the value of a property, it is not performed by an appraiser but by a real estate agent. Option B is incorrect because a CMA typically includes comparables that are recently sold, not properties that are currently for sale. Option C is incorrect because a CMA does not require a signature from the salesperson preparing it; however, it is common practice for the agent to provide it to the seller as part of their service.