Difficulty: Easy

Average Score: 100%

In completing a comparative market analysis on a property, the licensee is primarily attempting to

Rationale

In completing a comparative market analysis on a property, the licensee is primarily attempting to show the owner the anticipated selling price.

A comparative market analysis (CMA) focuses on evaluating similar properties in the market to determine a competitive and realistic selling price for the subject property. This process involves analyzing recent sales data, current listings, and market trends to provide the owner with a well-informed price expectation.

A (explain to the owner why the price she wants to ask is too high) YOUR ANSWER

While a CMA may involve discussing price expectations, the primary goal is not to justify or challenge the owner's desired price but to provide a comparative overview of the market. The analysis aims to inform rather than critique the owner's pricing strategy.

B (show the owner what should be done to the property to make it more saleable) YOUR ANSWER

Improving a property's saleability can be an important aspect of real estate consulting, but it is not the main focus of a CMA. The analysis centers on market comparisons and pricing rather than specific recommendations for property enhancements or staging.

C (appraise the property's actual value) YOUR ANSWER

Appraising a property involves a formal valuation process conducted by a licensed appraiser, which includes a comprehensive examination beyond market comparisons. A CMA provides a market-driven estimate rather than an official appraisal, focusing on comparative data rather than a definitive value.

Conclusion

The essence of a comparative market analysis is to help the property owner understand the anticipated selling price based on market conditions and comparable properties. This process equips the owner with valuable insights to make informed decisions about pricing their property competitively, thereby enhancing the likelihood of a successful sale.

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