Massachusetts-Real-Estate-Salesperson Exam Results

Comprehensive and Detailed Explanation (150–250 words):

A competitive market analysis (CMA) is a tool prepared by real estate licensees to help sellers establish a listing price and to help buyers determine an appropriate offer. It compares recent sales of similar properties, active listings, and expired listings to estimate a property’s fair market value.

A: Insurance companies use replacement cost appraisals, not CMAs.

B: Depreciable value is for tax accounting and appraisals, not CMAs.

C: Local tax assessments do not typically reflect current market value and are not the basis of a CMA.

Because it helps both sellers and buyers understand market value, the correct answer is D.

The correct answer is D, approximately 2.14%.

First calculate commission on the initial $5,000,000:

$5,000,000 × 1% = $50,000.

The agent earned $125,000 in total, so commission attributable to sales above $5 million is:

$125,000 − $50,000 = $75,000.

Now calculate the sales volume above the threshold:

$8,500,000 − $5,000,000 = $3,500,000.

Determine the rate:

$75,000 ÷ $3,500,000 = 0.02142857

Converted to a percentage:

0.02142857 × 100 = approximately 2.14%.

Therefore D is correct.

This is a reverse commission calculation: instead of being given the rate and finding commission, the candidate derives the percentage from total compensation and sales volume.

The key is separating the two compensation tiers before dividing.

Study Guide Reference: Real Estate Calculations — commissions, percentages and tiered compensation calculations.

Comprehensive and Detailed Explanation (150–250 words):

Blockbusting is the illegal practice of inducing homeowners to sell by suggesting that the entry of minority or ethnic families into the neighborhood will negatively affect property values. The flyer in this scenario explicitly encourages homeowners to sell “before it’s too late,” a textbook example of blockbusting under the Fair Housing Act of 1968.

A (good marketing) is wrong because the intent is discriminatory.

C (redlining) refers to lenders refusing to provide loans in certain areas, not brokers pressuring owners.

D (steering) involves directing buyers toward or away from certain neighborhoods.

Thus, the courts would identify this as blockbusting.

But notice the answer choices do not include 176 except as D. This matches our calculation.

Therefore, the correct frontage is 176 feet (D).

(Note: The original problem text contained a typo listing 15 ft depth for the smaller lots, which is mathematically inconsistent. With the corrected 150 ft depth, the frontage answer is 176.)