Which property is the strongest comparable for a 3-bedroom ranch in a suburban subdivision?
Correct Answer
A) A similar ranch two streets over that sold four months ago
Why this is correct: The strongest comparable is the one most similar to the subject in key characteristics (like style, size, age) and located in the same immediate market area (neighborhood), with a recent, closed sale price. This provides the most direct evidence of market value for the subject. Why the other choices are wrong: An identical model across town is in a different location, introducing location adjustment uncertainty. A listing is an asking price, not a concluded sale. A three-year-old sale is too stale without significant time adjustment. Exam tip: Prioritize comps that are similar, proximate, and recent (SPR).
Why This Is the Correct Answer
Why this is correct: The strongest comparable is the one most similar to the subject in key characteristics (like style, size, age) and located in the same immediate market area (neighborhood), with a recent, closed sale price. This provides the most direct evidence of market value for the subject. Why the other choices are wrong: An identical model across town is in a different location, introducing location adjustment uncertainty. A listing is an asking price, not a concluded sale. A three-year-old sale is too stale without significant time adjustment. Exam tip: Prioritize comps that are similar, proximate, and recent (SPR).
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:
Paired sales are drawn from transactions six months apart in a stable market. The time adjustment needed is:
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Why is a foreclosure sale generally a poor comparable in a stable market?
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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