Property ValuationIntermediateDelaware Exam

Paired sales analysis is used in appraisal to:

ACompare two brokers' CMAs
BDetermine the dollar adjustment for a specific feature by finding two sales identical except for that featureCorrect
CSimply estimate the raw replacement cost of the physical structure alone, without regard to comparable sales, in general
DAssess the property's income potential

Why Determine the dollar adjustment for a specific feature by finding two sales identical except for that feature Is Correct

Answer B: Determine the dollar adjustment for a specific feature by finding two sales identical except for that feature

Paired sales analysis isolates the value contribution of a single feature by finding two comparable properties that are identical except for that one feature, so the price difference reflects the feature'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.

Key Property Valuation Terms in This Question

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