Sales ComparisonEASY16.4% of exam

Which set includes both transaction-related and property-related elements relevant to comparable-sale analysis?

Correct Answer

D) Rights, financing and sale terms, market timing, location and physical traits

Review the interests conveyed, financing and sale conditions, relevant market movement and locational, physical and applicable economic differences. The appropriate analysis follows supported price bases and material differences, rather than substituting cost components or a tax assessment for comparable-sales evidence. This list identifies comparison elements; it is not a universal arithmetic-order rule.

Answer Options

Area and bedrooms only, excluding financing and timing

Contractor overhead, accrued construction depreciation and builder profit

Assessed value and tax rate, excluding the sale terms and timing

Rights, financing and sale terms, market timing, location and physical traits

Why This Is the Correct Answer

Option D is correct because it includes transaction-related elements (property rights conveyed, financing and sale terms, market timing) and property-related elements (location and physical traits). These match the standard items of comparison used in comparable-sale analysis. Together they cover both how a sale occurred and what was sold.

Why the Other Options Are Wrong

Option A: Area and bedrooms only, excluding financing and timing

Option A, area and bedrooms only, excludes financing and timing. Those are physical traits only, so the set leaves out the transaction-related elements entirely.

Option B: Contractor overhead, accrued construction depreciation and builder profit

Option B lists contractor overhead, accrued construction depreciation and builder profit. Those are cost approach components, not elements of comparison for comparable sales.

Option C: Assessed value and tax rate, excluding the sale terms and timing

Option C uses assessed value and tax rate while excluding sale terms and timing. Tax assessment data are not elements of comparison for sales analysis, and the set omits the transaction elements.

How it sold, what sold

Ask two questions about each sale: how did it sell (rights, financing, conditions, timing) and what sold (location, physical traits).

How to use: Use these two questions to check whether an answer covers both transaction and property elements.

Exam Tip

Eliminate answer choices built from cost approach items or tax data; elements of comparison come from the sale and the property.

Common Mistakes to Avoid

-Comparing only physical features and ignoring transaction elements
-Mixing cost approach components into the sales comparison grid
-Using assessed value as a substitute for sales evidence

Concept Deep Dive

Analysis

This question tests the standard elements of comparison in sales analysis. Some elements relate to the transaction, such as property rights, financing, conditions of sale and market timing, and others relate to the property, such as location and physical characteristics. The correct set must include both groups.

Background Knowledge

Standard elements of comparison include property rights conveyed, financing terms, conditions of sale, market conditions, location and physical characteristics, with economic and use characteristics added where relevant. Transaction elements are often addressed first to reach a normalized price. This list identifies what to compare; it is not a fixed arithmetic order for every analysis.

Real-World Application

When reviewing a comparable, an appraiser confirms it was a fee simple sale with conventional financing, no unusual conditions, and a sale date five months ago. Then the appraiser compares its location, size and condition with the subject. Adjustments follow for any material differences found.

elements of comparisonproperty rights conveyedfinancing termsconditions of salemarket conditionsphysical characteristics

Was this explanation helpful?

People Also Study

Real Estate Market

13.6% of exam

Property Description

11.8% of exam

Land or Site Valuation

4.5% of exam

Cost Approach

13.6% of exam

Income Approach

8.2% of exam

Previous Question

For which property type is the sales comparison approach usually the primary approach?

Next Question

An appraiser’s analysis finds the market reacted to a comparable’s financing concession by its full dollar amount. Under Fannie Mae guidance, the adjustment may be:

Sales Comparison Questions Practice Interactively