Humber/Ontario Real Estate Course 1 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the primary function of a comparative market analysis (CMA) in real estate transactions?

To determine the best marketing strategy for a property
To provide an estimate of a property's market value
To assess potential environmental hazards
To identify zoning issues
To forecast future property values
To calculate property taxes

The correct answer is: To provide an estimate of a property's market value

The primary function of a comparative market analysis (CMA) in real estate transactions is to provide an estimate of a property's market value. A CMA involves analyzing similar properties in the area that are currently on the market, recently sold, or expired listings to determine the most likely price a property will sell for. This information is crucial for both buyers and sellers to make informed decisions about pricing and offers. The other options are incorrect because: - A is incorrect because while a CMA may assist in developing a marketing strategy, its primary function is to determine market value. - C, D, and F are incorrect as they do not relate to the main purpose of a CMA, which is determining the market value of a property. - E is incorrect because a CMA focuses on the current market value of a property rather than forecasting future values.