Property ValuationIntermediateDelaware Exam
An appraiser is appraising a Delaware property and finds three comparable sales. Sale 1 was 8 months ago, Sale 2 was 4 months ago, and Sale 3 was 1 month ago. Which comparable should be given the most weight?
ASale 1, because it has the longest track record
BSale 2, as a balanced midpoint
CSale 3, as it is the most recent and reflects current market conditionsCorrect
DAll three should be given equal weight
Why Sale 3, as it is the most recent and reflects current market conditions Is Correct
Answer C: Sale 3, as it is the most recent and reflects current market conditions
The most recent sale (Sale 3) best reflects current market conditions and should generally be given the most weight. Older sales may require time adjustments to account for market changes.
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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