Property Valuation
An appraiser conducting 'paired sales analysis' is attempting to:
AAverage the values of two comparable sales to estimate a midpoint
BFind two appraisers who reach the same value conclusion
CIsolate the market value contribution of a single feature by comparing sales differing only in that feature✓ Correct
DCompare commercial and residential sales in the same neighborhood
Explanation
Paired sales analysis involves finding two sales that are identical except for one feature. The difference in sale prices indicates the market value of that single feature, which the appraiser uses to make quantified adjustments to comparables.
Related California Property Valuation Questions
- What is a Broker Price Opinion (BPO) and how does it differ from an appraisal?
- A 'before and after' appraisal method is most commonly used in which situation?
- What is a 'comparable sale' (comp) in real estate appraisal?
- A 2,000 sq ft home in a neighborhood has a value of $400 per square foot based on comparable sales. Using the sales comparison approach, what is the indicated value?
- What does 'depreciation' mean in the context of real estate appraisal?
- The sales comparison approach to property valuation is MOST appropriate when appraising:
- The income approach to value is most appropriate for:
- A property generates a net operating income of $50,000 and is valued using a 5% cap rate. What is the estimated value?
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