A buyer's agent prepares a comparative market analysis (CMA) for a client and identifies that the subject property's most recent sale was a non-arm's-length distress transaction at a price well below current market value. How should the agent handle this sale when preparing the CMA?
Correct Answer
C) Exclude the distress sale from the comparables and explain to the client why it was excluded and what sales were used instead
Ohio agency law requires a buyer's agent to exercise reasonable care and provide accurate market information. A non-arm's-length distress sale does not reflect true market conditions and should be excluded from comparables. However, the duty of full disclosure requires the agent to explain the exclusion to the client so the buyer understands the basis for the CMA and can make an informed decision.
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