Which unit of comparison is most appropriate when valuing a duplex from mixed sales of duplexes and triplexes?
Correct Answer
D) Price per unit, or per square foot, standardized across the sales
Why this is correct: When comparing properties with different numbers of units (like duplexes and triplexes), using a price per unit or price per square foot standardizes the sales data, allowing for a meaningful comparison of value. Why the other choices are wrong: Total sale price does not account for size or unit count differences. Price per building per lot is not a typical market unit for multi-family properties. Price per bedroom, averaged across all sales, mixes data improperly and ignores other unit differences. Exam tip: The unit of comparison must reflect what the market actually uses and be applied consistently to all sales.
Why This Is the Correct Answer
Why this is correct: When comparing properties with different numbers of units (like duplexes and triplexes), using a price per unit or price per square foot standardizes the sales data, allowing for a meaningful comparison of value. Why the other choices are wrong: Total sale price does not account for size or unit count differences. Price per building per lot is not a typical market unit for multi-family properties. Price per bedroom, averaged across all sales, mixes data improperly and ignores other unit differences. Exam tip: The unit of comparison must reflect what the market actually uses and be applied consistently to all sales.
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