Property ValuationIntermediateAlaska Exam

An Alaska appraiser using the sales comparison approach gives the most weight to which comparable?

AThe comparable with the highest sale price
BThe comparable that is most similar to the subject and required the fewest adjustmentsCorrect
CThe most recently sold comparable regardless of similarity, under typical circumstances
DThe comparable located closest to the subject property

Why The comparable that is most similar to the subject and required the fewest adjustments Is Correct

Answer B: The comparable that is most similar to the subject and required the fewest adjustments

In reconciliation, the most weight is given to the comparable that most closely resembles the subject property and required the least adjustment. The fewer the adjustments needed, the more reliable the comparable's adjusted price is as an indicator of the subject's value.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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