Certified Relocation Professional (CRP) Practice Exam

For pending sales to be used as comparables in the sale comparison analysis grid, they need to be:

1. Have home inspections in progress

2. Involve owner financing

3. On the market for at least 30 days

4. Free of contingencies

The correct answer is: Free of contingencies

Pending sales being utilized as comparables in the sale comparison analysis grid should ideally be free of contingencies. When a sale is pending, it typically indicates that the seller has accepted an offer, but if that sale is contingent upon certain conditions (such as the buyer securing financing, the sale of another property, or a satisfactory home inspection), there is a risk that the sale may not close. This uncertainty makes it less reliable as a comparable because the terms and conditions affecting its finality are still outstanding. Sales that are not contingent provide a clearer representation of the market value, as they have reached a point where the agreement is more likely to conclude as a successful transaction. Using such sales enhances the accuracy of the comparative analysis, helping to provide a more dependable estimate of a property's value based on comparable transactions. Choosing sales that are contingent could skew the data and lead to less reliable valuation conclusions, as the presence of contingencies can dramatically affect the final sale price or the closing of the transaction itself.