Question

A licensed salesperson was assisting a seller in establishing a listing price for the seller's home. Prior to giving the seller the information the salesperson had gathered, the seller told the salesperson what price the seller wanted to use to list the home. Which of the following statements BEST describes what the salesperson should suggest as a list price:

A) at or above the highest ‘asking’ comparable property, regardless of the seller’s desired price.
B) at or below the lowest comparable sold property.
C) within range of the most recent ‘asking’ and ‘sold’ comparables in view of the seller’s urgency and market conditions.
D) the amount the seller initially wanted to use for a list price.

Answer 1

C) within range of the most recent ‘asking’ and ‘sold’ comparables in view of the seller’s urgency and market conditions.

Step-by-step explanation:

The sales comparison approach is the most common and accepted way of appraising a real estate property. You consider the value of similar options that were recently sold or listed in the market.

Even a regular person understands that the price of house is determined by the location of the house and the value of similar properties near that location.

Then the other aspect that must be considered is how fast does the seller needs to sell his property. If you are in a real hurry, e.g. to cover medical expenses, then you might need to ask for a lower price.