During training, Evan says that two pending sales and one active listing are enough to satisfy the comparable-sale requirement for a one-unit appraisal. Is Evan correct?
Correct Answer
B) No, because closed sales remain the minimum core support and listings or contracts only supplement the analysis
Closed sales are still the required backbone of the sales comparison approach. Current listings and contract sales can help support market-condition analysis and competitive positioning, but they do not replace the minimum closed-sale support.
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Which recent transfer should an appraiser treat with the greatest caution because it is most likely a non-arm’s-length transaction?
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Comparable Sale 2 closed at $390,000 with the seller paying $10,000 of the buyer’s closing costs. Market analysis indicates that this concession inflated the comparable’s effective price by only $6,000. How should the appraiser adjust the comparable for concessions?