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?
Correct Answer
B) Functional utility, because market participants may discount an awkward layout even when square footage is similar
Functional utility addresses how well a property’s design, layout, room arrangement, and usability meet market expectations. Two homes can have the same size but different buyer appeal because one has a more efficient and desirable floor plan.
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More Valuation Market Analysis Questions
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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?
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For a training exercise on broker pricing, Maya assigns weights of 50%, 30%, and 20% to three already adjusted comparable values of $420,000, $430,000, and $440,000. What weighted value indication does the exercise produce?