Humber/Ontario Real Estate Course 3 Exam Practice

When preparing a Comparative Market Analysis (CMA), what type of data should be included?

1. Properties sold in the last six months and currently listed properties.

2. Only properties currently listed for sale.

3. Properties sold within the last five years.

4. Excluded data from out of town properties.

5. Unsold listings from other realty firms.

6. All local real estate transactions in the last decade.

The correct answer is: Properties sold in the last six months and currently listed properties.

Including properties sold in the last six months and currently listed properties in a Comparative Market Analysis (CMA) provides a comprehensive view of the real estate market relevant to the property in question. This combination helps establish a fair market value by examining recent sales to understand pricing trends and current listings to gauge the competitive landscape. The recent sales data is critical as it reflects the most current market conditions and allows for adjustments based on the specifics of the property being analyzed, such as its location, size, and condition. Listing information helps in assessing how similar properties are positioned in the market, which can influence pricing strategies. Inclusion of properties only currently listed for sale would lack critical context about actual sales data, resulting in an incomplete analysis. Similarly, focusing solely on a broader time frame, such as properties sold within the last five years or including all transactions in a decade, could lead to skewed perceptions of current market dynamics, which are typically more reflective of recent activity. Excluding out-of-town properties or unsold listings from other realty firms can also limit the analysis, as these may provide valuable insights into market trends and competition.