Property ValuationIntermediateDelaware Exam

What is 'paired sales analysis' in real estate appraisal?

AComparing two appraisals of the same property done at different times
BComparing two properties that are identical in all respects except one feature to isolate the market value contribution of that specific featureCorrect
CAnalyzing sales data from two different market periods to identify trends
DPairing residential properties with commercial properties to determine a blended value

Why Comparing two properties that are identical in all respects except one feature to isolate the market value contribution of that specific feature Is Correct

Answer B: Comparing two properties that are identical in all respects except one feature to isolate the market value contribution of that specific feature

Paired sales analysis (matched pair analysis) isolates the contribution of a specific feature to market value by comparing two otherwise identical properties that differ in only that one feature (e.g.

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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