45. The listing broker representing a seller completes a CMA and suggests a listing price of $425,000. The seller agrees to list the property and have the broker market it for $425,000. There are multiple offers on the home, and the seller accepts an offer for $474,000. The sale closes. What is the market value of the home?
Answer: A
The market value of the home is $474,000.
Market value is typically determined by the price at which a property is sold in an open and competitive market. In this case, the seller accepted an offer of $474,000, which reflects the market value at the time of sale.
A) $474,000
This option correctly reflects the sale price at which the property was agreed upon by the seller and the buyer. Since market value is often synonymous with the final sale price in a competitive market, this amount is an accurate representation of the home's market value.
B) $495,000
This option is incorrect as it does not reflect any price associated with the transaction. There is no indication or evidence in the scenario provided that the home sold for this amount, making it an inaccurate representation of the market value.
C) $475,000
While this option is close to the sale price, it is not the actual amount accepted by the seller. The market value should reflect the price agreed upon during the transaction, which is $474,000, thus rendering this option incorrect.
D) $425,000
This option reflects the initial listing price suggested by the broker, but it does not represent the market value of the home at the time of sale. The final sale price of $474,000 is what determines the market value, making this option incorrect.
Conclusion
The market value of the home is definitively $474,000, as this is the price at which the seller accepted an offer and the sale was completed. Other options either reflect the initial listing price or are simply incorrect figures, failing to account for the actual transaction that took place in the real estate market.