Three relevant pool pairs indicate $14,500, $16,200 and $13,800. What is the most defensible way to use this evidence?
Correct Answer
D) Evaluate the paired evidence and justify the selected contribution and precision
The three indications average $14,833.33 and have median $14,500. Those are descriptive summaries, not an automatic professional selection rule. Evaluate controls, comparability, consistency and reliability before choosing and explaining the adjustment. Rounding should follow supported precision; neither the maximum nor a mandated arithmetic average is established solely by these values.
Why This Is the Correct Answer
Option D is correct because the three indications ($14,500, $16,200 and $13,800) must be evaluated for controls, comparability, consistency and reliability before an adjustment is chosen. The mean (about $14,833) and median ($14,500) are descriptive summaries, not mandated answers. The appraiser should justify the selected contribution and round only to the precision the evidence supports.
Why the Other Options Are Wrong
Option A: Select the median whenever three pairs exist, without reviewing their controls
Option A selects the median whenever three pairs exist without reviewing their controls. A median is a summary statistic, and using it mechanically ignores whether each pair actually isolates the pool feature.
Option B: Use the arithmetic mean rounded to $100, without reviewing evidence quality
Option B uses the arithmetic mean rounded to $100 without reviewing evidence quality. Averaging flawed and sound pairs together can produce an unsupported figure, and the rounding should reflect supported precision.
Option C: Use the maximum amount, since it shows the strongest demand
Option C uses the maximum amount because it shows the strongest demand. Picking the highest indication ($16,200) has no analytical basis and may reflect an uncontrolled difference rather than the pool's contribution.
Judge pairs, not just numbers
Before averaging, ask how good each pair is. A well-controlled pair deserves more trust than a loosely matched one.
How to use: Use this when answer choices offer mechanical mean, median or maximum rules.
Exam Tip
Prefer answers that call for evaluating evidence quality and explaining the conclusion over answers that apply a statistic mechanically.
Common Mistakes to Avoid
- -Applying the mean or median without reviewing pair quality
- -Choosing the highest indication to reflect demand
- -Reporting more precision than the evidence supports
Concept Deep Dive
Analysis
This question tests how to turn several paired-sales indications into a supported adjustment. Mean and median are useful summaries, but they are not automatic selection rules. The appraiser should weigh the quality and comparability of each pair and explain the chosen amount and its precision.
Background Knowledge
Paired sales analysis isolates the contribution of a single feature by comparing otherwise similar sales. Multiple pairs rarely agree exactly, so the appraiser reconciles them by judging which pairs are best controlled and most comparable. The final adjustment should be explained and stated with appropriate precision.
Real-World Application
An appraiser finds three pool pairs, but one pair also differs in lot size. After giving that pair less weight and reviewing the other two, the appraiser selects a pool adjustment and explains in the report why it was chosen.
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?
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