Difficulty: Hard

Average Score: 33%

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

Rationale

Show the owner the anticipated selling price.

In a comparative market analysis (CMA), the licensee focuses on evaluating similar properties in the market to estimate what the subject property is likely to sell for. This analysis helps the owner understand the competitive pricing landscape and set a realistic asking price.

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

While a CMA may reveal that an owner's desired price is unreasonable, its primary purpose is not to justify or criticize the owner's pricing strategy. Instead, it offers a market-based perspective on pricing that can inform the owner’s decisions, rather than merely pointing out flaws in their price expectations.

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

Although a CMA may indirectly lead to recommendations for property improvements based on market trends, its main goal is to assess value rather than provide specific guidance on enhancing saleability. The analysis does not focus on renovation advice but rather on establishing market value based on comparable sales.

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

A CMA is not an official appraisal; it serves as a market analysis tool. Appraisals require a licensed appraiser and follow strict regulations, while a CMA offers a comparative overview based on recent sales data and market conditions, facilitating an informed pricing strategy rather than determining an official value.

Conclusion

The primary goal of a comparative market analysis is to show the owner the anticipated selling price based on comparable properties. This helps the owner align their expectations with current market conditions, making informed decisions about pricing. By understanding the anticipated selling price, owners can set more competitive and realistic asking prices, ultimately enhancing their chances of a successful sale.

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