The third listing agent’s pricing approach, which did not include a CMA and set a high price, illustrates which concept?

• A. Ethics violation
• B. Negligence
• C. Fraud
• D. Competence

Answer: (B)

Pricing a property without a CMA and setting a high price shows a failure to exercise reasonable care in real estate practice. A CMA is the standard method for establishing market value by analyzing comparable sales, active and pending listings, and current market conditions. When an agent skips this step, they aren’t applying the due diligence and professional process expected to protect the client’s interests. That lapse—not applying a basic duty of care—constitutes negligence because it can lead to overpricing, longer time on the market, and missed opportunities for the seller.

It isn’t necessarily fraud, since there’s no stated intent to deceive. It isn’t simply a matter of lacking competence in knowledge; rather, it’s a failure to apply the appropriate professional procedures you’re expected to use, which is the essence of negligence.