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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.

Answer Options
A
Discard it as a single unreliable observation
B
Apply it immediately as the location adjustment
C
Double it to account for future traffic growth
D
Look for additional pairs confirming the difference

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.

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