Certified Relocation Professional (CRP) Practice Exam

According to ERC guidelines, what aspect of a comparable property must be free to qualify for analysis?

1. Owner financing

2. Contingencies

3. Home inspections

4. Market activity

The correct answer is: Contingencies

In accordance with ERC guidelines, for a comparable property to qualify for analysis, it must be free of contingencies. Contingencies in real estate transactions are conditions or clauses in a contract that must be met before the sale is finalized, such as the sale being dependent on the buyer securing financing or the property passing an inspection. If a property has contingencies that could potentially impede the transaction, it complicates the comparison with other properties that are straightforward sales. Therefore, ensuring the comparable property is without contingencies provides a clearer, more reliable basis for analysis, allowing for a fair evaluation of its value in relation to other properties. Additional considerations like owner financing, home inspections, and market activity do play roles in real estate assessments, but they do not directly impact the basic comparability of a property as contingencies do. Owner financing and market activity are elements that can be negotiated and may influence price but do not necessarily affect the fundamental eligibility of a property as a comparable unit for analysis. Home inspections are important for determining the condition of a property but do not render the property disqualified for comparison in the way that contingencies do.