Humber/Ontario Real Estate Course 3 Exam Practice

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Which of the following factors is typically NOT considered when preparing a comparative market analysis?

  1. Current listed properties

  2. Average local sale prices

  3. Absorption rates

  4. Local market trends

  5. Personal financial data of the seller

  6. Price adjustments for market conditions

The correct answer is: Personal financial data of the seller

The personal financial data of the seller is typically not considered during the preparation of a comparative market analysis (CMA). A CMA focuses primarily on the property being evaluated and its relationship to other similar properties in the market. Important aspects of a CMA include analyzing current listed properties, average local sale prices, absorption rates, local market trends, and price adjustments for market conditions. These factors help assess the property's fair market value based on objective market conditions. In contrast, the personal financial data of the seller focuses on individual circumstances that do not directly influence the property’s current market value or the dynamics affecting buyers and sellers in the broader real estate market. This data is more about the seller's financial situation and is not relevant to the standardized and comparative analysis required in a CMA.

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