A seller tells a licensee that he paid $350,000 for his property 3 years ago and that he now believes the property is worth at least $400,000. The seller states that he must sell the property. The licensee completes a comparative market analysis and finds that the market value is $290,000. The seller discloses an existing mortgage balance of $302,000. The licensee should

Listing the property at $400,000 contradicts the comparative market analysis indicating a value of $290,000. This approach is unlikely to attract buyers and could lead to unnecessary frustration for both the seller and the licensee due to unrealistic expectations.

While listing at $290,000 aligns with the market analysis, it does not address the seller's financial situation effectively. Without exploring the short sale option, the seller may still face difficulties in managing their mortgage obligations, as the sale price would not cover the existing mortgage balance.

Negotiating a loan modification plan may provide some relief, but it does not address the immediate need for the seller to sell the property. A loan modification could prolong the process and may not guarantee approval, especially if the property is worth less than the mortgage balance.