Final answer:
Denise's use of the rule of three in her market analysis involves selecting three comparable properties to estimate the value of a subject property, ensuring her analysis is based on actual market data.
Step-by-step explanation:
When Denise, a real estate licensee, is performing a market analysis and uses the rule of three, it refers to a common practice in real estate where she selects three comparable properties to estimate the value of a subject property. These comparables, often referred to as 'comps,' are chosen because they are similar to the subject property in terms of location, size, condition, and features. By analyzing the selling price and characteristics of these comps, Denise can make an informed estimation of the market value of the property she is assessing. This approach helps ensure that the market analysis is grounded in actual market data, providing a more accurate representation of what buyers may be willing to pay for similar properties.