Two sales differ only in that one backs onto a busy road, selling for $16,000 less. Before adopting that figure the appraiser should:
Correct Answer
D) Look for additional pairs confirming the difference
Why this is correct: A single paired sale provides an initial indication for an adjustment. To ensure reliability and support the adjustment, the appraiser should seek additional market evidence (more paired sales) to see if the indicated difference is consistent. Why the other choices are wrong: One reliable observation should not be automatically discarded. It should not be applied immediately without seeking corroboration. The adjustment should not be arbitrarily doubled. Exam tip: One paired sale is a clue; multiple paired sales are support.
Why This Is the Correct Answer
Why this is correct: A single paired sale provides an initial indication for an adjustment. To ensure reliability and support the adjustment, the appraiser should seek additional market evidence (more paired sales) to see if the indicated difference is consistent. Why the other choices are wrong: One reliable observation should not be automatically discarded. It should not be applied immediately without seeking corroboration. The adjustment should not be arbitrarily doubled. Exam tip: One paired sale is a clue; multiple paired sales are support.
More Sales Comparison Questions
Excess land differs from surplus land in that excess land:
A paired sales analysis reveals that homes with stainless-steel appliances sell for $2,100 more than identical homes with standard appliances — but only when the homes are priced below $350,000. In the subject’s neighborhood, median sale price is $410,000. What is the appraiser’s obligation regarding the $2,100 appliance adjustment?
GLA differs by 210 sq ft between subject and comparable. Paired sales support $65 per sq ft of living area. The line adjustment is:
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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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