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Sales ComparisonHARD16.4% of exam

Three comparables produce adjusted indications of $312,000, $309,000 and $315,000, requiring gross adjustments of 9%, 14% and 22% respectively. Verification also establishes that the first sale is the closest competitive substitute and its adjustments are better supported than the other two. Which indication deserves the most weight on those facts?

Correct Answer

A) The first indication, because of verified competitive similarity and stronger adjustment support

The verified competitive similarity and stronger adjustment evidence support greater reliance on the first comparable. Its smaller gross percentage alone would not establish that result, and the coincidence that an arithmetic mean equals the same amount is not a reason to assign relative weight.

Answer Options
A
The first indication, because of verified competitive similarity and stronger adjustment support
B
The highest indication, because it is the highest and the most favorable to the client and the lender
C
The second, because its gross adjustment is intermediate among the three
D
All three equally, since their arithmetic mean is $312,000

Why This Is the Correct Answer

The verified competitive similarity and stronger adjustment evidence support greater reliance on the first comparable. Its smaller gross percentage alone would not establish that result, and the coincidence that an arithmetic mean equals the same amount is not a reason to assign relative weight.

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