After controlling other influences, verified sales at $318,000, $305,000 and $291,000 are respectively superior, similar and inferior overall to the subject. What qualitative indication follows?
Correct Answer
B) The similar sale is a direct reference, bracketed by the others
Where all other influences are controlled, credible overall qualitative rankings support a bracket around the subject and a similar sale provides a useful reference. These are evidence-based indications, not universal hard market-value ceilings or floors.
Why This Is the Correct Answer
Option B is correct because the $305,000 similar sale is a direct reference point, and the $318,000 superior sale and $291,000 inferior sale bracket it. Qualitative analysis ranks comparables as superior or inferior to the subject, which supports an indication near the similar sale within that bracket.
Why the Other Options Are Wrong
Option A: The subject must be equal in value to the highest of the sales
Option A, that the subject must equal the highest sale, contradicts the ranking. The $318,000 sale is superior to the subject, so it suggests the subject's value is below that figure, not equal to it.
Option C: Only an arithmetic average of the three sales can be credible
Option C, that only an arithmetic average of the three sales can be credible, ignores the qualitative rankings. An average such as ($318,000 + $305,000 + $291,000) ÷ 3 ≈ $304,667 can be computed, but nothing requires it, and the rankings themselves are the evidence.
Option D: The inferior sale proves the subject is worth less than $291,000
Option D, that the inferior sale proves the subject is worth less than $291,000, reverses the logic. A sale inferior to the subject suggests the subject is worth more than $291,000, not less.
Superior above, inferior below
A superior sale sits above the subject's value and an inferior sale sits below it, with a similar sale near the middle.
How to use: Use this to read any superior, similar and inferior ranking question.
Exam Tip
Check that the answer places the subject below superior sales and above inferior sales; any answer that flips this is wrong.
Common Mistakes to Avoid
- -Reversing the meaning of superior and inferior
- -Treating bracketing sales as hard ceilings or floors
- -Assuming only an average is credible
Concept Deep Dive
Analysis
This question tests qualitative analysis using bracketing. When verified sales are ranked as superior, similar and inferior to the subject, the subject's value is indicated to fall around the similar sale, between the inferior and superior sales. These are evidence-based indications, not fixed limits.
Background Knowledge
Qualitative analysis compares comparables to the subject using rankings such as superior, similar or inferior rather than dollar adjustments. Bracketing the subject between superior and inferior sales narrows the range in which its value likely falls.
Real-World Application
An appraiser has three verified sales in the same neighborhood: one with a newer kitchen, one nearly identical, and one needing repairs. The appraiser ranks them and reconciles near the nearly identical sale, bracketed by the other two.
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Which two depreciation categories may each be classified as curable or incurable by comparing the cost to remedy a deficiency with the value gained?
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