All of the following are generally proper principles for selecting and analyzing comparable sales EXCEPT:
Correct Answer
C) The minimum closed-sale support can be satisfied entirely with active listings if they are recent enough
The sales comparison approach rests on closed sales, because only a completed transaction shows what a buyer and a seller actually agreed to pay. Active listings and pending sales are useful for showing competition and the direction of the market, but they are asking prices, not evidence of a completed exchange, so they cannot stand in for the required closed-sale support. The statement that listings alone can satisfy that requirement is the false one, which makes it the exception the stem asks for.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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Previous Question
All of the following statements about a broker’s comparative market analysis are generally accurate EXCEPT:
Next Question
Two otherwise similar sales suggest that buyers in a market pay about $80 per square foot for additional living area. The subject contains 1,800 square feet. A comparable sold for $460,000 and contains 1,950 square feet, with no other meaningful differences. What is the comparable’s adjusted sale price?