Property Valuation
In Michigan, 'market-derived' adjustments in the sales comparison approach means the adjustments are:
ASet by the appraiser based on professional judgment alone
BSupported by market data showing what buyers actually pay for specific features (e.g., paired sales, regression analysis)✓ Correct
CProvided by the lender
DBased on construction cost estimates only
Explanation
Market-derived adjustments are based on actual market data showing what Michigan buyers pay for specific features (extra bedroom, garage, pool). Techniques like paired sales analysis or regression extract these market-supported adjustment amounts.
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