Paired sales from three different feature-matched pairs, sold at different dates, each isolate roughly 0.5% price growth per month. What has been supported?
Correct Answer
A) A market-conditions (time) adjustment rate
Why this is correct: Paired sales analysis matches properties that are nearly identical except for sale date. When multiple pairs consistently indicate a similar monthly rate of change (e.g., 0.5%), this empirically supports a market-conditions (time) adjustment rate. Why the other choices are wrong: The analysis isolates time, not location differences. It supports the adjustment rate, not the subject's final value conclusion. It does not determine the subject's effective age. Exam tip: Multiple paired sales converging on a rate strongly support a time adjustment.
Why This Is the Correct Answer
Why this is correct: Paired sales analysis matches properties that are nearly identical except for sale date. When multiple pairs consistently indicate a similar monthly rate of change (e.g., 0.5%), this empirically supports a market-conditions (time) adjustment rate. Why the other choices are wrong: The analysis isolates time, not location differences. It supports the adjustment rate, not the subject's final value conclusion. It does not determine the subject's effective age. Exam tip: Multiple paired sales converging on a rate strongly support a time adjustment.
More Market Questions
Building permit data is most useful to an appraiser as:
In the neighborhood life cycle, what characterizes the decline stage?
In which phase of the real estate cycle do rising vacancies first meet a still-growing construction pipeline?
The principle of consistent use prohibits:
Employment in a one-industry town falls 20%. Through what mechanism does housing demand contract?
Frictional vacancy in a rental market refers to:
The principle of opportunity cost applied to real estate means:
A neighborhood with a wide range of property values requires the appraiser to:
In-migration to a metro area increases housing demand primarily by:
Absorption rate expressed in units per month is calculated by:
People Also Study
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam