A competitive market analysis is used to estimate the

Question

Certilyst · Accepted Answer

D Rationale: A competitive market analysis is used to estimate the most probable price a property will bring. This analysis evaluates recent sales of similar properties to determine a price that reflects current market conditions and buyer expectations.

Choice A is incorrect because a competitive market analysis does not guarantee the actual price a property will sell for, as market conditions can change and negotiations may alter the final sale price.

Choice B is wrong since a competitive market analysis aims to find a realistic price point rather than the highest price, which may not be achievable in the current market.

Choice C is misleading because the analysis does not simply calculate an average price; it focuses on identifying a realistic price that reflects the most likely market outcome based on comparable sales.

Ultimately, choice D accurately reflects the purpose of a competitive market analysis, which is to provide an estimate of the most probable sale price in a competitive environment.

New Jersey Real Estate Exam Practice Test

A competitive market analysis is used to estimate the