The subject contains 1,900 square feet. The three comparables contain 1,700, 1,780 and 1,840 square feet, and gross living area is supported at $70 per square foot. What is the concern?
Correct Answer
B) Every comparable is smaller, so all size adjustments run one way
Why this is correct: with the subject at the top of the range, every size adjustment is upward and the conclusion rests on the rate being right, with no sale above the subject to test it against. Why the other choices are wrong: three sales can be enough in number and still fail to bracket; nothing in the stem bears on whether $70 is the right rate; and comparables similar to one another is ordinarily a strength.
Why This Is the Correct Answer
Why this is correct: with the subject at the top of the range, every size adjustment is upward and the conclusion rests on the rate being right, with no sale above the subject to test it against. Why the other choices are wrong: three sales can be enough in number and still fail to bracket; nothing in the stem bears on whether $70 is the right rate; and comparables similar to one another is ordinarily a strength.
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Five comparables are ranked by overall desirability. The subject falls between the second and third ranked, which sold at $322,000 and $314,000. What does ranking analysis indicate?
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Three comparables produce adjusted indications of $292,000, $298,000 and $305,000. The appraiser concludes a value of $310,000. What is the problem?