PSI New Jersey Real Estate State Practice Exam

If a broker is determining an asking price for a property with special features, what should they consider in comparison to similar properties?

1. Market trends

2. Features and amenities

3. Selling agent's reputation

4. Time of year

The correct answer is: Features and amenities

When a broker is determining an asking price for a property with special features, it is essential to consider the features and amenities of that property in comparison to similar properties. Characteristics such as unique design elements, high-end finishes, energy-efficient systems, or oversized lot sizes can significantly influence a property's appeal and value. Understanding how these special features stack up against comparable properties helps in accurately positioning the property in the market. Market trends certainly play a role in pricing, as they provide insight into the current buyer demand and overall economic conditions. While this context is necessary for setting a realistic price, it is not as directly relevant as the specific attributes of the property itself. Similarly, the reputation of the selling agent can be influential in a listing's success, but it does not contribute to the value of the property compared to others on the market. The time of year can affect market dynamics and may influence how quickly a property sells, but it does not directly impact the inherent value derived from the property's features and amenities. Thus, focusing on the specifics of the property allows the broker to establish a price that reflects its true market value.