Matched pair analysis is most reliable when the two sales:
Correct Answer
C) Occurred close in time and differ in one respect
Why this is correct: Matched pair analysis is most reliable when the two sales are very similar and occurred close in time, differing in only one relevant characteristic. This isolates the value of that single feature. Why the other choices are wrong: Using different property types introduces too many variables. Different market areas introduce location variables. Identical financing terms are good, but time proximity and a single difference are more critical for reliability. Exam tip: The ideal pair is like the subject in all ways but one, and sold at the same time.
Why This Is the Correct Answer
Why this is correct: Matched pair analysis is most reliable when the two sales are very similar and occurred close in time, differing in only one relevant characteristic. This isolates the value of that single feature. Why the other choices are wrong: Using different property types introduces too many variables. Different market areas introduce location variables. Identical financing terms are good, but time proximity and a single difference are more critical for reliability. Exam tip: The ideal pair is like the subject in all ways but one, and sold at the same time.
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