Relative comparison analysis is appropriate when:
Correct Answer
B) The market supports direction but not specific amounts
Why this is correct: Relative comparison analysis is a recognized technique within the sales comparison approach, used when market data is insufficient to derive precise, dollar-based adjustments. The governing concept is that the market may indicate the direction of an adjustment (e.g., a comparable is superior or inferior to the subject) without providing enough paired sales to quantify the exact amount. The original explanation correctly states that bracketing the subject between superior and inferior sales can lead to a supportable value conclusion. Why the other choices are wrong: The choice 'Every single adjustment in the grid can be precisely measured' describes a scenario for a fully quantitative adjustment grid, not a relative comparison. The choice 'The appraiser prefers a faster method' is incorrect because the selection of an appraisal method must be based on data reliability and appropriateness, not the appraiser's convenience. The choice 'Only one comparable sale is available' is wrong because relative comparison still requires multiple comparables to establish a meaningful bracket or range. Exam tip: Remember that relative comparison is about direction, not dollars. Look for keywords like 'bracketing,' 'superior/inferior,' or 'range' in the question stem.
Why This Is the Correct Answer
Why this is correct: Relative comparison analysis is a recognized technique within the sales comparison approach, used when market data is insufficient to derive precise, dollar-based adjustments. The governing concept is that the market may indicate the direction of an adjustment (e.g., a comparable is superior or inferior to the subject) without providing enough paired sales to quantify the exact amount. The original explanation correctly states that bracketing the subject between superior and inferior sales can lead to a supportable value conclusion. Why the other choices are wrong: The choice 'Every single adjustment in the grid can be precisely measured' describes a scenario for a fully quantitative adjustment grid, not a relative comparison. The choice 'The appraiser prefers a faster method' is incorrect because the selection of an appraisal method must be based on data reliability and appropriateness, not the appraiser's convenience. The choice 'Only one comparable sale is available' is wrong because relative comparison still requires multiple comparables to establish a meaningful bracket or range. Exam tip: Remember that relative comparison is about direction, not dollars. Look for keywords like 'bracketing,' 'superior/inferior,' or 'range' in the question stem.
More Sales Comparison Questions
Excess land differs from surplus land in that excess land:
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A comparable sold 8 months ago for $250,000 in a market appreciating 6% per year. What is the time-adjusted price?
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