Which sentence best explains relative reliance with an evidentiary reason?
Correct Answer
D) Sale 2 got most weight: verified, competitive and with supported adjustments.
An analytical statement links the selected comparable to verified relevance and supported adjustments. Fewest adjustments, same street and recency can inform review but do not automatically prove reliability. Being within a numerical range alone is not a reconciliation rationale.
Why This Is the Correct Answer
Option D is correct because it names the sale given the most weight and ties that reliance to evidence: the sale was verified, competitive with the subject, and had supported adjustments. Greatest weight goes to the sales closest in comparability after evaluating the adjustments made to each. This is a reasoned explanation of relative reliance.
Why the Other Options Are Wrong
Option A: All of the comparables were considered in reaching the conclusion.
Option A says all comparables were considered. That is a general statement that does not say which sales received more weight or why.
Option B: The selected comparables were all quite similar to the subject property overall.
Option B says the selected comparables were all quite similar overall. It gives no relative weighting and no specific evidence, so it does not explain reliance.
Option C: The value lies somewhere within the range of the adjusted sale prices.
Option C says the value lies within the range of adjusted sale prices. Falling within a range is a numerical observation, not a reason for relying more on one sale than another.
Which sale, and why
A good reconciliation names the sale it relies on and gives the evidence for that reliance.
How to use: Use this when choosing the best reconciliation statement.
Exam Tip
Look for a statement that names a specific comparable and gives concrete evidentiary reasons for its weight.
Common Mistakes to Avoid
- -Writing generic statements that all sales were considered
- -Using the range of adjusted prices as the reason for reliance
- -Assuming fewest adjustments alone proves reliability
Concept Deep Dive
Analysis
This question tests what makes a reconciliation statement analytical rather than generic. A good statement says which sale received the most weight and gives an evidence-based reason. Reason through which option links reliance to verification, competitiveness and supported adjustments.
Background Knowledge
Reconciliation in the sales comparison approach weighs the adjusted sale prices to reach a value indication. Appraisers evaluate the adjustments made to each comparable and give greatest weight to those closest in comparability. A clear explanation connects that weighting to specific evidence.
Real-World Application
After adjusting three sales, an appraiser writes that Sale 2 received the most weight because it was confirmed with the listing broker, sold in the subject's segment, and needed only adjustments supported by paired sales. The other two sales are given secondary weight with reasons stated.
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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