Chapter 5 Flashcards
A comparative market analysis is performed by which of the following…..?
A. Real estate agent
B. Real estate appraiser
C. Homeowner
D. Buyer
A. Real Estate Agent
An analysis of the competition in the marketplace that a property will face upon sale attempts is known as a ….?
A. Pro forma
B. Appraisal
C. Comparative market analysis
D. Listing package
C. Comparative market analysis
A comparative market analysis is also known as an appraisal…?
A. True
B. False
B. False
What is a typical starting radius to use when searching for recently sold properties….?
A. 1/4 Mile
B. 1 Mile
C. 5 Miles
D. 10 Miles
A. 1/4 Mile
Expired listings are listings that have ….?
A. Recently sold
B. Not sold
C. Recently been activated
D. Recently been taken off the MLS
B. Not Sold
Comparables can be obtained from the Multiple Listing Service……?
A. True
B. False
A. True
Which of the following is an indication of a desirable area…..?
A. an abundance of active listings
B. an abundance of expired listings
C. A lack of active listings
D. A lack of comparable properties
C. A lack of active listings
Properties can differ on which of the following features….?
A. Size of the property
B. Age of the house
C. Condition of the property
D. All of the above
D. All of the above
When conducting a CMA, an agent can usually find an identical property….?
A. True
B. False
B. False
Commissions are always negotiable ….?
A. True
B. False
A. True
As an additional check when conducting a CMA, agents should also analyze properties on a…..?
A. Rent per sq. ft. basis
B. Price per cubic ft. basis
C. Price per sq yard basis
D. Price per sq ft. basis
D. Price per sq ft basis
A comparable property sold for $300.000, which included 2 bedrooms and 3 bathrooms. If the subject property includes 2 bedrooms and 2.5 bathrooms, what type of adjustment must be made…..?
A. Positive adjustment
B. Affirmative adjustment
C. Negative adjustment
D. Enhanced adjustment
C. Negative adjustment
A comparative market analysis is not absolute…?
A. True
B. False
A. True
A comparable property sold for $250,000, which included 2 bedrooms and 2 bathrooms. If the subject property also includes 2 bedrooms and 2 bathrooms but comes with a garage, what type of adjustment must be made….?
A. Postiive adjustment
B. Affirmative adjustment
C. Negative adjustment
D. Enhanced adjustment
A. Positive Adjustment
What is typically the seller’s largest closing cost…..?
A. Transfer taxes
B. Brokers’s commission
C. Attorneys fees
D. Escrow fees
B. Broker’s commission
In most cases, sellers believe their property is worth….. a comparative market analysis?
A. More than
B. Less than
C. Equal to
D. Significantly lower than
A. More than
A CMA reflects the realities in the marketplace….?
A. True
B. False
A. True
In addition to the broker’s commission, sellers are also responsible for paying which of the following when selling their house….?
A. Closing costs
B. Appraisal fees
C. Repositioning costs
D. Loan origination fees
A. Closing costs
What is the minimum number of comparables an agent should use when conducting a CMA…?
A. 1
B. 3
C. 6
D. 10
B. 3
A listing broker’s commission is typically shared with a buyer’s broker…?
A. True
B. False
A. True
A real estate agent offers which of the following to the principal …..?
A. Experience
B. Exposure
C. Expertise
D. All of the above
D. All of the above
The value of comparable properties can vary greatly depending on the age of each property…?
A. True
B. False
A. True
A CMA helps determine the listing price of a property….?
a. True
B. False
A. True
Working with buyers is typically more time consuming than working with sellers…?
A. True
B. False
A. True
Comparables are also known as....? A. Listings B. Comps C. Appraisals D. Valuations
B. Comps
A comparable market analysis is also known as a ….?
A. Appraisal
B. Listing presentation
C. Pro forma
D. Competitive market analysis
D. CMA
A CMA is only used for residential properties up to…?
A. 4 units
B. 5 units
C. 6 units
D. 10 units
A. 4 units
When conducting a CMA, an agent should look for comparable properties that have sold in the last….?
A. 3 months
B. 12 months
C. 18 months
D. 24 months
A. 3 months
When conducting a CMA, which of the following listings should be reviewed….?
A. Recently sold properties
B. Current Properties on the market
C. Expired listings
D. All of the above
D. All of the above
Expired listings were most likely listed below market value….?
A. True (True)
B. False (False)
B. False
What is Comparative Market Analysis?
An analysis of the competition in the marketplace that a property will face upon sale attempts.
