According to Australian Property Institute standards, what is the maximum age of comparable sales that should typically be used in a direct comparison valuation in a stable market?
Correct Answer
B) 6 months
The Australian Property Institute generally recommends using comparable sales no older than 6 months in a stable market to ensure the data reflects current market conditions. In rapidly changing markets, even more recent sales may be required for accuracy.
Why This Is the Correct Answer
The Australian Property Institute generally recommends using comparable sales no older than 6 months in a stable market to ensure the data reflects current market conditions. In rapidly changing markets, even more recent sales may be required for accuracy.
About Property Valuation & Appraisal
Valuation methods, comparative market analysis, factors affecting value, and appraisal standards.
Study Tips for Valuation
- • Review the key legislation and regulatory frameworks for your state/territory
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More Valuation Questions
What is the primary purpose of a Comparative Market Analysis (CMA) in property valuation?
Which of the following is NOT one of the three main approaches to property valuation recognised by the Australian Property Institute?
In the summation approach to valuation, what does the term 'depreciation' primarily refer to?
When using the capitalisation approach for an investment property generating $52,000 annual rental income, what would be the estimated value using a 6.5% capitalisation rate?
A property valuer is assessing a 15-year-old commercial building. The replacement cost new is $2,000,000, land value is $800,000, and total depreciation is estimated at 25%. What is the property value using the summation approach?
- → Which factor would have the LEAST direct impact on a residential property's market value in a CMA?
- → When conducting a CMA for a residential property, what is the preferred timeframe for comparable sales to ensure market relevance?
- → An investment property generates $75,000 gross annual rent with operating expenses of $15,000. If the market capitalisation rate is 7%, what is the property's estimated value?
- → A heritage-listed commercial property requires valuation for a forced sale. The property has significant functional obsolescence due to heritage restrictions limiting modifications. Which valuation approach would be LEAST appropriate as the primary method?
- → A valuer is assessing a unique architectural property with no recent comparable sales. The property generates $120,000 net annual income, but market capitalisation rates vary from 5.5% to 7.5% depending on risk assessment. What additional factor is MOST critical for determining the appropriate rate?
- → What is the primary purpose of a Comparative Market Analysis (CMA) in property valuation?
- → Which valuation approach would be most appropriate for valuing a newly constructed office building with no rental history?
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- → A retail property generates annual net rental income of $120,000. Using a market capitalisation rate of 6%, what is the capitalised value of the property?
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Previous Question
A valuer is using multiple approaches to value a unique heritage-listed commercial property. The comparison approach indicates $1.8M, the cost approach shows $2.2M, and the income approach suggests $1.6M. Given the property's unique characteristics and limited comparable sales, which approach should be given the greatest weight?
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