In WA, which of the following factors would a valuer consider when assessing the market value of a residential property using the direct comparison method?
Correct Answer
B) Recent comparable sales, adjusted for location, land, improvements, condition and market
The direct comparison method requires analysis of recent comparable sales, with adjustments for differences in location, land area, building quality and condition, and prevailing market conditions at the date of valuation. The valuer must exercise professional judgement in selecting and adjusting comparables.
Why This Is the Correct Answer
Direct comparison values a property from recent sales of similar properties, adjusted for differences such as location, land, improvements, condition and market movement.
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