Property Valuation
In the sales comparison approach, the appraiser should give the most weight to:
AThe highest-selling comparable
BThe comparable most similar to the subject in location, physical characteristics, and market conditions✓ Correct
CThe most recently sold comparable regardless of similarity
DThe lowest-selling comparable to be conservative
Explanation
The most similar comparable (fewest and smallest adjustments) is given the most weight in reconciliation because it requires the least adjustment and therefore provides the most reliable value indication.
Related Arkansas Property Valuation Questions
- Which of the following most accurately describes 'market rent'?
- When an appraiser selects comparable sales, they should prefer comparables that:
- The principle of substitution states that a buyer will pay no more for a property than:
- The income approach to value is based on the principle that a property's value is related to:
- The principle of conformity holds that:
- Regression is an appraisal principle that states:
- An income property has an NOI of $50,000 and the market cap rate is 7.5%. What is the estimated value?
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