Humber/Ontario Real Estate Course 1 Exam Practice

What action should a new real estate salesperson with no experience in appraisals take when asked to value a unique property?

1. Ask the owner how much they paid for the property originally

2. Seek guidance from an experienced colleague in their brokerage

3. Visit the property and estimate its value themselves

4. Average the listing prices of similar properties found on MLS®

5. Ask for advice from another newly registered salesperson

The correct answer is: Seek guidance from an experienced colleague in their brokerage

Seeking guidance from an experienced colleague in their brokerage is the most appropriate action for a new real estate salesperson when asked to value a unique property. This option leverages the expertise and knowledge of someone seasoned in the field, which is crucial when dealing with a property that may not conform to typical valuation metrics. Unique properties often have distinct features or circumstances that require specialized knowledge and understanding of the market. An experienced colleague can offer insights into comparable properties, valuation techniques, and any local market trends that are relevant, ensuring that the new salesperson provides a more accurate and comprehensive assessment. While asking the owner how much they paid for the property, visiting and estimating its value, averaging listing prices, or seeking advice from another newly registered salesperson may seem like options, they do not equip the new salesperson with the necessary expertise to perform a valuation correctly or reliably. Relying solely on these methods may lead to an inaccurate appraisal and potentially harmful consequences for both the salesperson and their clients.