Three comparables produce adjusted indications of $312,000, $309,000 and $315,000, requiring gross adjustments of 9%, 14% and 22% respectively. Which indication deserves the most weight?
Correct Answer
A) $312,000, from the comparable requiring 9% gross adjustment
Why this is correct: the comparable needing the least adjustment started out most like the subject, so its indication depends least on the appraiser’s own adjustment estimates. Why the other choices are wrong: the 14% and 22% comparables required more of the analysis to be supplied rather than observed, and the 22% one is weak enough to question. The mean happens to equal $312,000 here, but averaging treats the weakest comparable as the equal of the strongest, and that coincidence would not survive a different set of three.
Why This Is the Correct Answer
Why this is correct: the comparable needing the least adjustment started out most like the subject, so its indication depends least on the appraiser’s own adjustment estimates. Why the other choices are wrong: the 14% and 22% comparables required more of the analysis to be supplied rather than observed, and the 22% one is weak enough to question. The mean happens to equal $312,000 here, but averaging treats the weakest comparable as the equal of the strongest, and that coincidence would not survive a different set of three.
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