Janelle is appraising a 1,700-square-foot ranch home in a stable suburban subdivision. Which property is generally the best comparable to rely on most heavily?
Correct Answer
D) A nine-month-old ranch sale in the same neighborhood with similar size, age, condition, and a supported time adjustment
The best comparable is usually the property that is most similar to the subject in location, size, age, condition, and utility, even if it is not the newest sale. Official appraisal guidance allows an older sale when it is the better indicator of value, as long as the appraiser explains its use and applies supported market-condition adjustments when needed.
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More Valuation Market Analysis Questions
A buyer in Rochester is pre-approved for a conventional mortgage and wants to purchase a co-op apartment. What should the buyer's agent explain about financing a co-op purchase in New York?
A parcel is in a desirable retail corridor and buyers want it, but an unresolved title defect and missing legal access make it hard to close. Which element of value is most directly impaired?
When appraising co-op apartments in New York, all of the following factors must be considered due to their unique ownership structure EXCEPT:
A first-time buyer in New York City asks their agent about the difference between owning a co-op versus a condo. What is the fundamental ownership difference the agent should explain?
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- → An example of functional obsolescence is:
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What best describes a comparative market analysis (CMA) prepared by a real estate broker?
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A subject property does not have a finished basement. A comparable sale closed at $420,000 and does have a finished basement. Market evidence shows buyers in that neighborhood pay about $18,000 more for a finished basement. What adjustment should the appraiser make to the comparable?