Question 80

Show the owner the anticipated selling price.

The licensee, in conducting a comparative market analysis, aims to demonstrate to the owner the expected selling price of the property based on market trends and comparable sales. This analysis helps the owner set a realistic price for their property.

A) Explain to the owner why the price she wants to ask is too high.

While a licensee may provide insight into pricing, the primary goal of a comparative market analysis is not to justify why a certain price is too high. Rather, it focuses on providing data that reflects the market conditions and helps establish a fair market value.

B) Show the owner what should be done to the property to make it more saleable.

Although improving a property's salability may be a consideration in the overall sales strategy, the primary purpose of a comparative market analysis is not to recommend improvements. Instead, it is to assess the current market value and potential selling price based on comparable properties.

C) Appraise the property's actual value.

A comparative market analysis is not a formal appraisal and does not aim to determine the exact value of a property. Instead, it provides a market-driven perspective that helps estimate a feasible selling price based on recent sales of similar properties.

D) Show the owner the anticipated selling price.

This option accurately reflects the main objective of a comparative market analysis. By analyzing comparable sales, the licensee helps the owner understand what price range is realistic based on current market conditions, thus guiding them in setting an appropriate asking price.

Conclusion

The correct answer is D, as the primary purpose of a comparative market analysis is to provide the owner with an anticipated selling price informed by market data. In contrast, options A, B, and C misinterpret the function of this analysis, focusing instead on justifications or appraisals rather than the anticipated market price itself.