Arizona State University (ASU) REA380 Real Estate Fundamentals Exam 2 Practice Exam

Performing a comparative analysis in real estate primarily aims to establish a fair market value for a property. This process involves examining similar properties that have recently sold in the same area to determine a realistic price point for the property in question. By comparing attributes such as location, size, condition, and features, real estate professionals can assess how a property stacks up against its competition.

This established fair market value is crucial, as it helps sellers set an appropriate listing price and assists buyers in making informed offers. Understanding the fair market value also provides insights into current market conditions and trends, which can further inform clients' decisions.

While increased listing price, elimination of an appraisal need, and attracting more buyers can be potential effects of having a proper comparative analysis, they are not direct outcomes of the analysis itself. Instead, they could be secondary outcomes that depend on other factors such as market conditions or individual property features. Therefore, the primary focus of a comparative analysis is to accurately gauge the value of a property within the context of the market.