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 real-estate-market Questions
A market-conditions adjustment should be applied to a comparable:
Building permit data is most useful to an appraiser as:
In the neighborhood life cycle, what characterizes the decline stage?
'Filtering' describes the process by which:
Under the principle of substitution, the maximum value of a property tends to be set by:
Why does an appraiser analyze the market area before analyzing the subject property?
In which phase of the real estate cycle do rising vacancies first meet a still-growing construction pipeline?
Which measure most directly signals demand strength in a housing market?
The principle of consistent use prohibits:
Frictional vacancy in a rental market refers to:
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
USPAP (Ethics & Standards)
15% of exam