On an assumed common comparison basis, furnace-versus-none indicates $12,000 and heat-pump-versus-none $14,500. A separate system-to-system pair indicates $2,200. Which conclusion is arithmetically and analytically appropriate?
Correct Answer
C) The first two imply $2,500; investigate the $300 gap rather than claim exact consistency
The first two differences imply 14500−12000=$2,500 between system contributions on the assumed common basis. The third observed difference is $2,200, leaving a $300 arithmetic gap. That is not exact triangular equality and does not itself prove any observation wrong: context, sampling variation and controls require investigation. Averaging unlike comparisons or assigning arbitrary 50% weights does not resolve the gap.
Why This Is the Correct Answer
Option C is correct because on the assumed common basis the first two pairs imply $14,500 - $12,000 = $2,500 between the systems. The direct pair shows $2,200, leaving a $300 gap that does not prove any observation wrong but calls for investigating context, sampling variation and controls.
Why the Other Options Are Wrong
Option A: The first two numbers prove an exact $2,200 difference
Option A says the first two numbers prove an exact $2,200 difference. They actually imply $14,500 - $12,000 = $2,500, not $2,200, so they do not match the third pair exactly.
Option B: Average all three different contrasts as one central-HVAC value
Option B averages all three contrasts as one central-HVAC value. The three figures measure different comparisons (furnace versus none, heat pump versus none, and system versus system), so averaging them mixes unlike quantities.
Option D: The smallest of the three contrasts requires an automatic 50% weight reduction in the reconciliation
Option D applies an automatic 50% weight reduction to the smallest contrast. No rule supports a fixed weight cut based on size; reconciliation weighting depends on the quality and relevance of each indication.
Check the triangle
If A minus none and B minus none are known, B minus A should be close to their difference; a gap means look closer.
How to use: Use this when a question gives three related paired-sales results.
Exam Tip
Do the subtraction yourself before accepting any claim that indications are exactly consistent.
Common Mistakes to Avoid
- -Averaging indications that measure different comparisons
- -Assuming related indications agree without checking the arithmetic
- -Applying arbitrary weights instead of investigating the gap
Concept Deep Dive
Analysis
This question tests checking the internal consistency of paired-sales indications. The two system-versus-none pairs imply a difference between the systems, which can be compared with the direct system-to-system pair. A gap should prompt investigation rather than averaging or arbitrary weighting.
Background Knowledge
Paired sales analysis can produce several related indications, and checking whether they agree is a useful test of reliability. Differences between indications can arise from sampling variation or uncontrolled factors, and the appraiser investigates them before reconciling.
Real-World Application
An appraiser studying heating systems finds furnace homes sell about $12,000 above homes without central heat and heat-pump homes about $14,500 above them. A direct comparison of heat pump and furnace homes shows $2,200, so the appraiser reviews the sales for other differences before settling on an adjustment.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
An appraiser wants to describe the neighborhood boundaries in a Fannie Mae report. Which approach is acceptable?
Which of these is listed by Fannie Mae as a sales or financing concession?
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Previous Question
The subject home backs onto a four-lane arterial road. The appraiser finds one pair of recent sales that isolates the effect of backing onto the arterial, indicating prices about 6% lower. Separate interviews with three local brokers and two recent buyers in the neighborhood consistently describe buyers discounting such homes by about 5% to 7%. How should the appraiser use the interviews?
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