Humber/Ontario Real Estate Course 4 Exam Practice

In what way can a Comparative Market Analysis (CMA) be helpful to a seller?

1. Can be helpful for a seller evaluating any offers received.

2. Is also commonly referred to as a 'narrative report' or a 'form report.'

3. Is commonly used by appraisers to estimate the market value of a property.

4. Must include an estimate of selling costs and net proceeds, according to the REBBA Code of Ethics.

5. Helps determine the property’s investment potential.

6. Can be used to argue a property tax assessment.

The correct answer is: Is also commonly referred to as a 'narrative report' or a 'form report.'

A Comparative Market Analysis (CMA) serves a critical role in helping a seller by providing a detailed overview of the current market conditions in relation to their property. While the option about a CMA being called a "narrative report" or "form report" offers some terminology context, it is not the aspect that primarily benefits sellers in evaluating their property. The most significant advantage of a CMA lies in its ability to present comparable sales data, helping sellers gauge their property's value in the current market. This comparison helps sellers set a realistic asking price, ensuring it is competitive yet reflective of their property's true worth, facilitating a quicker sale. Other choices may highlight different benefits associated with the CMA process, such as assisting in negotiations or evaluating offers, but it's essential to focus on how a CMA fundamentally aids in positioning a property effectively in the market by utilizing accurate and relevant data. This information is instrumental in a seller's overall strategy, impacting their decisions on pricing and timing in the marketplace.