Property Valuation
In Alaska, the 'market data approach' (sales comparison approach) works best when:
AThere are many recent, comparable sales of similar properties nearby✓ Correct
BThe property is a special-use facility with no comparable sales
CThe property is an income-producing commercial building
DNo recent sales have occurred in the market area
Explanation
The sales comparison approach is most reliable when there are recent arm's-length sales of similar properties in the same market area that can be adjusted to the subject property. Sparse or no comparable sales limit the approach's usefulness.
Related Alaska Property Valuation Questions
- When an appraiser determines that a comparable sale was made under duress (foreclosure), how should the appraiser treat it?
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- In Alaska, a licensed appraiser must develop and report their opinion of value in a manner that is:
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