An appraiser’s adjusted comparable sales indicate $485,000, $491,000, and $494,000, but the final value conclusion is $520,000 with no additional discussion. Which statement is most accurate?
Correct Answer
D) The appraiser would need strong support and explanation because the conclusion falls materially outside the comparable range
When a value conclusion falls materially outside the range supported by the sales comparison analysis, the appraiser should provide a persuasive explanation and discuss why the comparables are weaker indicators or why other evidence justifies the difference. A large unexplained jump above the adjusted range is a red flag.
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Previous Question
Paired-sales analysis indicates that an extra garage bay contributes $12,000 in a neighborhood. The subject has a two-car garage. Comparable Sale 3 sold for $438,000 and has only a one-car garage. Ignoring all other differences, what is the comparable’s adjusted sale price?
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A comparable has the same gross living area as the subject, but its awkward floor plan and smaller bedroom count make it less appealing to typical buyers in that market. Which element of comparison is most directly involved?