Discuss Real Estate Licensing Maryland-Real-Estate-Salesperson Exam Topic 15 Question 6

Which of the following is a method a real estate licensee uses to determine an appropriate listing price range?

AAppraisal

BComparative market analysis

CMarket process

DProforma

Suggested Answer: B

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Only licensed or certified appraisers may perform an appraisal for a fee in a federally related transaction.

A real estate licensee, however, may prepare a Comparative Market Analysis (CMA) or Broker Price Opinion (BPO) to help a seller decide on a listing price or a buyer to make an offer.

A CMA compares recent sales, active listings, and expired listings of similar properties to estimate a realistic price range.

This procedure is emphasized in the ''Appraisal and Valuation'' module as a permitted pricing tool for real estate professionals.

Reference (Maryland Source):

-- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Valuation and CMA section.

-- Business Occupations and Professions Article 17-511 (b).

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31 comments · newest first

Telma 6 months ago

Exactly, it's more about cash flow than listing price.

Jolanda 6 months ago

Proforma isn't really for pricing, right?

Shayne 6 months ago

I agree, B gives a broader view of the market.

Fabiola 6 months ago

Appraisal is good too, but B covers more.

Eleni 7 months ago

Yeah, comparative market analysis is key!

Lemuel 7 months ago

I think B is the best choice.

Theodora 7 months ago

I didn't know about B) before, sounds interesting!

Minna 8 months ago

Wait, is D) Proforma even related to listing prices? Seems off.

Willie 8 months ago

I agree, B is the best choice!

Emogene 8 months ago

I thought A) Appraisal was more common for pricing.

Hermila 8 months ago

Definitely B) Comparative market analysis! That's the go-to method.

Pok 8 months ago

Haha, D. Proforma? What is this, a commercial real estate exam?

Kizzy 8 months ago

B all the way! Comps are the key to nailing that listing price.

Flo 9 months ago

D. Proforma? Really? Who uses that for pricing a house?

Tijuana 9 months ago

B is the correct answer. Gotta love those comps!

Ashley 9 months ago

I thought the market process was more about trends rather than setting a price, but I guess it could be related somehow.

Chanel 9 months ago

I feel like I've seen questions about this before, and I think the answer might be B, but I could be mixing it up with something else.

Josephine 9 months ago

Comparative market analysis, that's the one! I remember learning that's the key tool real estate agents use to determine the right listing price. B is definitely the answer I'm going with on this exam question.

Mary 9 months ago

Okay, let me walk through this step-by-step. We use a comparative market analysis to look at recent sales of similar properties in the area. That helps us price the listing competitively. I'm pretty confident B is the right answer here.

Scot 10 months ago

I remember studying appraisals, but I can't recall if they are specifically for listing prices or just for valuations in general.

Mabel 10 months ago

I think the comparative market analysis is the most common method, but I'm not entirely sure if it's the only one used.

Gilberto 10 months ago

Definitely B. Comparative market analysis is the way to go for real estate pricing.

Ronny 10 months ago

I'm a little confused on this one. Is it B, comparative market analysis? Or could it be C, market process? I'll have to review my notes to make sure I understand the difference between those two methods.

Bernardo 10 months ago

I'd say A. An appraisal is the most reliable method to determine a listing price.

Margarett 11 months ago

Hmm, I'm not totally sure about this one. I know we use appraisals and market processes, but I can't remember if comparative market analysis is the right term. I'll have to think this through carefully.

Stevie 11 months ago

I think I know this one - it's got to be B, comparative market analysis. That's how we look at similar properties to determine the right listing price.

Arlene 5 months ago

↳ replying to Stevie

Exactly! It gives a solid price range.

Glenna 5 months ago

↳ replying to Stevie

It helps to see what similar homes sold for.

Barbra 5 months ago

↳ replying to Stevie

A lot of agents use that method.

Erinn 6 months ago

↳ replying to Stevie

Yeah, comparative market analysis is key for pricing.

Lashandra 6 months ago

↳ replying to Stevie

I agree, B is definitely the right choice!

Real Estate Licensing Maryland-Real-Estate-Salesperson Exam - Topic 15 Question 6 Discussion